| Illegal fund-raising refers to the act of raising money from the public(including)by violating national laws and regulations concerning financial management. Recently, the rapid economic development has brought abundant private capital, however, the narrow investment channels and the difficult financing of medium-sized and small enterprises have led to substantial amounts of illegal fund. Tremendous Illegal fund-raising, a serious negative influence and a potential threat to the social stability, has disturbed the normal financial order.There are some prevention and control systems concerning illegal fund-raising in China, but illegal fund-raising has become increasingly serious. The present plight demonstrates that national financial systems have lagged behind, the supervision of illegal fund-raising is absent and there are inadequate criminal laws and regulations. Some measures have to be taken in order to establish sound prevention and control systems concerning illegal fund-raising. First, financing chancels of medium-sized and small enterprises should be perfected by enriching wealth management products, establishing the system of regional medium-sized and small private banks and regulating regional informal financial organizations; Second, the supervision of informal financing should be strengthened:constructing systems of entry and exit of informal finance, constructing the registration system of informal finance and the disclosure system of informal finance, establishing quickly the credit informational system of private lending; Third, Investment Fund Act and Regulations On Private Financing of Medium-Sized and Small Enterprises should be established and enforced as soon as possible to regulate private financing; The system of early warning and monitoring private financing should be established and perfected, illegal fund-raising should be cracked down on more severely and acts of illegal financing should be punished severely according to law. |
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