Reference Research On Regulation Of Hedge Funds

Hedge fund is a pooled investment vehicle, through varied and flexible strategiesand financial instruments, such as Empty, Leverage and Selling to buy to pursuit ofhigh investment returns. The fund manager privately raises funds from wealthyindividual investors and mature institutional investors. Hedge funds get high return oninvestment; help improve the operational efficiency of financial markets and theoverall level of the financial industry. With the development of economicglobalization and financial globalization, hedge funds has rapid developed in theworld, especially the widely used of computer technology considerably increase itsflexibility. As a part of the shadow banking system, the diversified investment notonly affects the securities market, but also affected the real estate, oil, gold and othermarkets, and its can even affect the country’s industrial structure and economicdevelopment. Hedge funds might lead to international economic and systemic risk sothat countries all over the world should regulated it in accordance with their ownnational conditions.China’s financial reform offers increasing types of derivative products, whichprovides mechanism for hedge fund. Private equity, equity investment fund includedthe use of hedging mechanisms Fund, while sunny private equity funds can beregarded as initial stage of hedge fund. China has not yet regulation of hedge funds,the new Securities Investment Fund Law affirmed the legal status of the private equityfund, and the detailed implementation is in the comment period. Hedge fund development in China needs a clear legal guidance. For this purpose, this thesisanalyzes the legal nature of the hedge fund and the hedge fund regulatory regime,legislation of The United States, Hong Kong and Germany, putting forward to China’shedge fund legislation and regulatory envisage.In order to solve and clarify the captioned matter, this thesis consists of fourchapters:Chapter1: Introduction. This chapter brings up the question why should theGovernment regulate hedge funds. First of all, this thesis studies on the meaning andcharacteristics of hedge funds. Through analysis the relationship of fund holders,managers and custodian, we can come to a conclusion that the legal nature of hedgefund is Trust.Chapter2: Basic analysis of hedge funds regulation. This chapter focus on thedispute whether the Government should regulate hedge funds or should deregulate it.In order to resolve this dispute, the following part explain the cost-efficiency analysismethod, come to the conclusion that we should rationally regulate hedge funds byusing this method.Chapter3: Hedge fund regulation. This chapter selected three representativecountries and region. By analysis and compare of the three countries and region onthe development approach and establishment of their regulation mode, and eachcountries its own characteristics hedge fund set up system, investment system,information disclosure system, we may find that their experience guidance to ourlegislation and regulation.Chapter4: China’s hedge fund legislation and regulation construction. throughthe above legal relationship analysis, and draw lessons from the advanced experienceof other counties, also compared with China’s current law and regulations,especiallythe new Securities Investment Fund Law, the author put up to China’s regulationmode and set up legislative framework.