The Legal Issues For Qualified Investor Of Private Placement Bond Of Small And Medium Enterprise

Private placement bond of small and medium enterprise is a new product of China’snon-public offering bond market. Up to now, it’s still in the pilot phase. Although it’s along-awaited, but the systems are still in the exploratory stage. Qualified investors system, asthe core system, is continuing to explore in a perfect stage. This paper will research the legaldefinition for qualified investors. Through arguing the necessity and status of the system, itwill reflect the defining standards for qualified investors. Combing with useful experience andlessons, it puts forward some programs for legal definition of qualified investors.The first chapter will argue the necessity of private placement bond of small and mediumenterprise establishing qualified investors systems。At the first, this part analyses the basisquestions with qualified investors systems. Then, it discusses the need for private placementbond of small and medium enterprise to build the qualified investors from the theoretical andpractical aspects. The need for a theoretical level bases on the fundamental characteristics ofprivate placement bond, the value of investor protection and performing a balancing behaviorfreedom and market regulatory functions. The need for a realistic level bases on the conditionof the pilot, which proves the need to establish the qualified investors system.The second chapter discusses the judgment standards of accredited investor in the UnitedStates and the qualified investors in other types of companies in China. To study theadvantages of different judgment standards can offer some useful advances for theimprovement of private placement bond of small and medium enterprise establishingqualified investors system. The last part mainly introduces the status quo of current China’ssmall and medium-sized enterprises private placement bond systems. From substantialjudgment standard and form judgment standard, the problems will be reflection.The last chapter makes recommendations for the judgment standards qualified investorfrom legal perspective: at first, we will define the standards of qualified investors to acombination of subjective and objective principles; secondly, it defines the standards ofrefinement according to the different types; finally, it makes recommendations forimprovement identified and calculated on the number of qualified investors.