The Feasibility Analysis Of The Hedge Fund In China

Ever since1949, hedge funds has established62years of history till today, After the European currency crisis in1992and the1997-1998Asian financial crisis, hedge funds has caught the attention from governments and academics from around the world. With the globalization of capitalization and globalization of financial markets and financial innovation, hedge funds has rapidly developed world wide, the diversification of investment affected not only the world’s financial markets, but also the growing depth of the impact to the international crude oil, gold and other resources. Source commodities market, even used mergers and acquisitions to affect the country’s industrial structure, so to have impact on the economic development of different countries. By the end of2001China’s accession to the World Trade Organization, The economies of our country with international is in line with more close. And then, free convertibility of RMB, domestic financial markets, especially those derivatives market, has established and opened capital market, making our country and the presence of hedge funds possible. In addition, the stock index futures have launched China, and traded, and sold its leveraged trading with empty mechanism, which has significantly contributed to the emergence and development of hedge funds. This article will review the speculations of hedge funds in history, explores the investment feature, and compare the domestic and foreign financial markets and the legal regulation, analyze whether there is a market for the hedge fund to develop in China.This article includes five chapters. In Chapter One, there is the background, objective and significance of the analysis; In Chapter Three, we compare the domestic and foreign financial markets, analyze whether there is a market for the hedge fund to develop in China; In Chapter Four, we compare the domestic and foreign legal regulation, analyze whether there is a market for the hedge fund to develop in China; In Chapter Five, we put the conclusion of this article and the forward some personal point of view of hedge funds future in our country.