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Research On Legal Regulation Of Sovereign Wealth Funds

Posted on:2014-04-28Degree:MasterType:Thesis
Country:ChinaCandidate:J TanFull Text:PDF
GTID:2296330425979578Subject:Economic law
Abstract/Summary:PDF Full Text Request
The sovereignty wealth funds is not produced in recent years, and the conception ofwhich is not emerging. Retrospect to the international financial market in the past ten years. Itis no doubt that the concept of the sovereignty wealth funds became the most attractive one.Along whit the rapid expansion of the global economy, the prosperity of the internationaltrade and the expansion of foreign currency reserves, according to the relevant data shows, thescale of the sovereignty wealth funds reached as high as3.8trillion US dollars, up to2010.Based on the statistical information from authority, the total assets of sovereignty wealth fundwill be accumulated up to10-15trillion dollars in2015.On September29,2007, the China investment limited liability company was formallyestablished. It marked the birth of the wealth founds of China. The China investmentcompany, which with the200billion US dollars registered capital, attracted the attention ofpublic opinion and became the most attractive Chinese enterprise in the world. The "CICNo.2" has been approved to establish in August,2010. It means the second Sovereign WealthFunds was about to be born in China.Accompany with the reform and open policy gradually thorough, the Chinese economyobtains the considerable development. The foreign exportation daily expansion, our country’sforeign exchange reserve created new high records repeatedly, up to at the end of March,2009. The balance of foreign exchange reserve reached as high as1.9537trillion US dollars.Along with the economic situation development, the growing of our foreign exchange reservewill continue. In order to deal with a series of questions which brought by the rapid raising ofthe foreign exchange, the establishment of the sovereignty wealth funds to manage theforeign exchange reserve scientifically was into urgent affairs.But since the establishment of the company, the huge loss was reported repeatedly. Fromthe investment to the American black stone to the investment to Morgan Stanley, all thesefailure experiences are the stabbing pain of people’s nerve. In2011, Chinese sovereigntywealth fund----The performance of overseas investment business of China investmentcompany Ltd. was the worst in the past four years. According to the ‘2011Annual report’,under the global economy influence, the earning rate of overseas business was-4.3%in2011.This situation is incompatible with the company’s objectives, which are holding, managing and investing the entrusted assets, maximizing shareholders’ interests in the range ofacceptable risk.The China sovereignty wealth funds is facing the doubt from people because of thedecline of the returning ratio. It also was facing the similar doubt from international society.The request of western countries to increase sovereignty wealth fund transparency is upsurging. Large amounts of developed country are launching an attacking to the sovereigntywealth funds by citing the transparency is not enough, the investment motivation is not pure,the governance structure is not reasonable and the damage of the international financialmarket.Thus how to face these questions from outside and play the positive role of China’ssovereign wealth funds is becoming an important subject.This article made a definition to the sovereignty wealth funds based on the existingliterature, and made the analysis to the existence questions of Chinese sovereignty wealthfunds. There are four parts in this text.The first part:"the general situation of sovereignty wealth funds". This party elaboratedthe definition, the characteristic and the type of sovereignty wealth funds separately. As wellas the sovereignty wealth funds development survey, the multianalysis to the sovereigntywealth funds rules and the necessity of regulations. In this way, the first part forms apreliminary understanding to the sovereignty wealth funds.The second part:"the Chinese sovereignty wealth funds law rules and regulationssurvey". This part obtains two aspects; the first aspect elaborated the production, developmentand causes of the Chinese sovereignty wealth funds; the second aspect focused on the fourmain legal regulation problems which are faced by the Chinese sovereignty wealth funds, thencarries on the detailed elaboration introduction to these four questions.The third part:"The legal supervising and managing experience model of the overseassovereignty wealth funds", this part divided into four aspects, introduced the sovereigntywealth funds legal rules and regulations in Singapore, the sovereignty wealth funds legal rulesand regulations in Norwegian, the sovereignty wealth funds legal rules and regulations inSouth Korean, and the sovereignty wealth funds legal characteristic in Russian.The last part:"Improve the Chinese sovereignty wealth funds legal supervising andmanaging", this part mainly aims at the problems, which mentioned in the second part faced by the Chinese sovereignty wealth funds. And the last part made a serious of suggestions indrawing lessons from the experience of any other countries which analyzed in the third part.Key Words: Sovereign Wealth Funds; Legal Regulations; Chinese Sovereign WealthFundslegal rules and regulations, the South Korean sovereignty wealth fund law rules andregulations, the Russian sovereignty wealth fund legal characteristic.The fourth part "the consummation to Chinese sovereignty wealth fund legal supervisingand managing", this part mainly is aims at the question which the second part of Chinesesovereignty wealth fund faces as well as profits from the third part of overseas sovereigntywealth fund the experience to profit from puts forward the correlation proposal.
Keywords/Search Tags:Sovereign Wealth Fund, Legal Regulations, Chinese SovereignWealth Fund
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