Legal Issues On Market Access And Organizational Forms Of Foreign Equity Investment Fund

From an investor’s perspective, foreign equity investment fund as an investment tool, has become an integral part of asset allocation choices for global institutional investors. From the financier’s perspective, the introduction and development of foreign equity investment fund, providing new financing channels, injecting new vitality for Chinese enterprises, especially SMEs, is conducive to the economy development. From the perspective of the national macro-control, making good use of foreign equity investment fund companies can reduce excessive dependence on indirect financing, improve the financing structure, which is conducive to the reform of investment and financing system, guiding the rational allocation of social capital, promoting industrial restructuring.In China, the organizational form of foreign equity investment funds has substantial impact on their earnings. Given the majority of scholars exploring the best organizational form of foreign equity investment funds only from the theoretical level, and did not take into account the country’s strict market access system for foreign equity investment funds. Therefore, this article focuses on the best organizational form of the foreign equity investment funds under the domestic legal framework. Although we regard the limited partnership as the most suitable organizational form, there are still many obstacles for the limited partnership equity investment funds are in the legal aspects, the author gives the corresponding legislative proposals.This article includes the following five parts:The first part introduces the concepts, legal property of the equity investment funds.Especially, discussing in detail whether private is necessary in financing equity investment funds. Another part is a brief introduction of the species and status quo of foreign equity investment funds with the combination of the practical operation of foreign equity investment funds.The second part is the brief introduction of the Chinese market access system for the foreign equity investment funds. Another part is the detailed introduction of the establishment approval system for the foreign equity investment funds.The third part introduces the reason of the investment approval system for the foreign equity investment funds. Another part is the detailed introduction of the investment approval system for the foreign equity investment funds.The fourth part is the detailed introduction of the theoretically organizational form of the foreign equity investment funds. Combining with the practical operation mode of foreign equity investment funds in China, this article draw the conclusion that the best organizational form for foreign equity investment funds is limited partnerships. As well as, this article points out the obstacles for the limited partnership foreign equity investment funds in China. Finally, given there are still many obstacles for the limited partnership foreign equity investment fund in the legal level, this article gives the legislative advices on the regulatory approach of foreign equity investment fund.