On The Legal System Concerning The Private Placement Bonds Of Small And Medium-sized Enterprises

The issuing of private placement bonds of small and medium-sized enterprises is one of the important measures that China’s Securities Regulatory Commission had taken in the bond market in2012. The government aimed to make it easier for small and medium-sized enterprises to raise funds by establishing such a financial system. This system could also give impetus to multi-level capital market system, extend the financing channels of small and medium-sized enterprises and serve the real economy. At the beginning of the issuing, the private placement bonds sell very well. However, after a short time, the investors become hesitant and refused to buy more private place bonds. There are many reasons contributing to the depression in the financial market, yet the imperfect legal system is one of the most important reasons.The first part of the thesis introduces the concepts and current situation of private placement bonds, analyses the difference between the concepts of private placement bonds of small and medium-sized enterprises and the other private placement bonds, clarifies the importance of private placement bonds, makes it clear that private placement bonds, which are still defective, have maintained a sound trend in development. The second part of the thesis analyses the current regulations on the number of people in issuing, accredited investor, issuing way and resale of private placement bonds by comparing them with the other laws and regulations. The third part of the thesis makes a further attempt to find legal loopholes in the existing provision. The forth part of the thesis tries to offer some suggestions to improve the legal system of private placement bonds.