Research On Legal Regulation Of Hedge Funds

Since the1949Alfred W. Jones established the first modern hedge fund in the UnitedStates, after decades of development hedge funds has become a mature investment mode infinance developed countries. With the share reform,margin financing, stock index futures anda series of financial reforms and financial derivative products, operating tools of hedge fundin China has been continuously enriched, operation conditions gradually mature, hedge fundshave also entered the initial stage of development. But relative to the speed of development ofhedge funds, our related laws develop slowly.Now,building a set of hedge fund operationsand supporting legal norms is an urgent problem need to be solved, Especially in the earlystages of development of hedge funds, a sound legal system is particularly important. Becauseof its characteristics of hedge funds, excessive regulation will stifle the creativity andflexibility so that the loss of the active role of financial markets; at the same time,the quantumfund in1992against the pound, the Asian financial crisis in1997, the subprime crisis in2008also let us see the huge risks to relax regulation, so how can we not only reduce the risk ofhedge funds in operation, but also guarantee the hedge fund flexibility, improve theoperational efficiency of the hedge fund, has always been the focus and difficulty wereasonable regulation of hedge fund operations.This paper base on the actual situation of China, Study on the development of domestichedge funds and related laws, hope to provide suggestions for the hedge fund related legalnorms. The two thousand words, are divided into four parts to discuss the relevant issues inthe regulation of hedge funds, the specific contents are as follows:The first part, the basic theory of legal regulation of hedge funds. The paper firstintroduces the concept of hedge fund and the three forms of organization, and thecharacteristics of hedge funds is discussed in detail, the characteristics of the grasp is thefoundation of legal regulation of hedge funds.Then described the connotation of legalregulation, and points out the causes of legal regulation for hedge funds.The second part, current situation and deficiency of the legal regulation of hedge fund inchina. This part raises the question, summarizes the development status of China’s hedge fundand the related law, briefly reviews the main contents of the people’s Republic of ChinaSecurities Investment Fund Law", and pointed out the defect of the legal regulation of hedgefund in china. The third part, Study on legal regulation USA and Hong Kong hedge fund. In this part,seek the solution, the United States of America and the Chinese Hong Kong which are tworepresentative countries and regions hedge fund related laws. In this part wo want to find theirown characteristics, sum up experience, in order to find out the beneficial reference for thelegal system of China’s hedge fund design.The fourth part, To improve the legal regulation of hedge fund in China. In this part,base on the actual situation of China, learn from foreign experience, I put forward some legaladvice in order to protect the legitimate interests of domestic investors and maintain thecapital market of our country. We should establish our hedge fund legal system to stabilizefinancial markets and support economic growth.