Legal Regulation Research On The Resale Of Chinese Privately-offered Securities

The current legal system of China has been preliminary established theframework of privately-offered securities offering. However, there are so many fatalloopholes in the legal system of transferring privately-offered securities which is themost important part of the privately-offered securities offering. Consequently, theissuer and related parties or other investors conspire to public issue securities bymeans of using the name of transferring private offering securities. It not only affectsthe normal order of the securities market, but also harms the interests of investors,therefore we need to regulate the legal system of transferring privately-offeredsecurities. Meanwhile, the restrictions on resale of the privately-offered securities willagainst its development, because the restrictions must will be hindered the liquidity ofthe privately-offered securities, and the investors will loss enthusiasm under thecircumstance that the risk of investment cannot be transferred. So it’s important tofind a balance between the circulation and the restriction on resale of theprivately-offered securities, and the equilibrium of the convenience in fund raisingand the protection of the investors’ interests will be achieved. Based on the above, thisthesis summarizes the current situation of the privately-offered securities in china andrefers the advanced experience of the United States on privately-offered securitiesresale, puts forward proposal to improve legal system of the Chinese privately-offeredsecurities resale from the Angle of perfecting securities market, legal system andresponsibility.This thesis can be divided into three parts, which include the introduction, Mainbody and Conclusion. Among them the Main body is divided into four parts: In the first chapter, the author analyzes the definition of privately-offeredsecurities in china and American. Then the author reveals the meaning of therestriction on resale of the privately-offered securities from the efficiency value andthe fair value.The second chapter is about the present conditions and shortcomings of Chineseprivately-offered securities. This chapter combs the current PRC laws and regulationson resale of privately-offered securities according to the classification of theprivately-offered securities that is divided into private equity, private debt and privateequity. In the last, the author points out the problems of the current legal system oftransferring privately-offered securities in China.The third chapter is about the refer of the advanced experience of the UnitedStates on privately-offered securities resale. This chapter introduces the evolution ofUSA’s legal systems of securities private placement and analyzes the Rule144andRule144A of the privately-offered securities resale, then get some conclusions usefulto our country.The fourth chapter is about the improvement of the legal system of Chineseprivately-offered securities resale. First of all, the author suggests to set up aprivately-offered securities trading market for resale by divided the privately-offeredsecurities market into general market and special market. Then the author advises toestablish different trading rules for the different markets. Finally, the author putsforward proposal to impose punishment on transferring privately-offered securitiesillegally.