On The System Of Qualified Investors For Non-public Offering Securities

At present, enterprises face difficulties in financing but huge amounts of folk financingtravel around in China. In order to dredge the capital circulation channel, it isn’t enough tosolely depend on public placement market. Lots of private placement funds are wanderingbetween legal and illegal, they are lack of legal basis. Non-public placement offeringsecurities is a kind of securities which is only for special investors by specific mode, andregulated by particular legislation. Theoretically, private placement funds belong toNon-public placement offering securities, is a new way to solve the handicap of investmentand financing. Security supervise department should lower the standards of non-publicplacement offering and duty of information disclosure. Simultaneously, the investing abilityof investors should be strong enough to analyze and counter the investment venture ofnon-public placement offering securities. Therefore, how to draw up access threshold is theessence of the system of non-public placement offering. The major problem would be settled,after the establishment of the system of qualified investors for non-Public offering securities.There exists no non-Public offering securities in China’ s Securities Law, either lacks thesystem of qualified investors. Presently, the qualified investors of bonds of securitiescompanies, junior bonds and trust scheme in department rules only have to possess enoughwealth. With the reform of the system of administrative offering approval, and large numberof institutional investors and individual investors are emerging. We could establish the systemof qualified investors for non-public offering securities, on the basis of analyzing andtransplanting the relational system of the United States, and combining the conditions of ourcountry. Assessment of investor both on substantive criteria, such as: ability of informationacquisition, ability of venture perception and the level of wealth, and also on outer forms, forexample: status of investors, the relationship with issuers, investment experiences. On thebasis of Suitability Doctrine, we should lay restriction on the qualifications and number ofinvestor, strengthen the examining and informing obligations of agencies, and ensure genuineinvestment of investor. By means of establishing the system of qualified investors anddetermining qualified standard, we would improve the diathesis of investors and broughtforward the healthy development of the securities market of our country.