Study On Legal Issues Of Foreign Private Equity Funds Review

With the gradual opening of China's capital market, the foreign private equity fund, as a form of foreign investment, is introduced into our country in 1990 s. Its arrival not only greatly promotes the development of local private equity fund, but also plays a leading role in Chinese private equity market. Although foreign private equity fund leads establishment, development and prosperity of Chinese private equity market and standardized Development of local private equity fund, it may generate some negative effects on financial markets of China. It is for reasons of profit-driven nature of the capital and hidden political objectives among all the complexities of foreign private equity fund. In the economic globalization today, any fluctuations in international financial markets may affect China's economy, and even to threaten Chinese economic security when it involves people 's livelihood. Focusing on reasonable legal regulation of foreign private equity fund is a key subject both in theory and practice at present.At the international level, the emerging rules for international investment has two main parts: Trans-Pacific Partnership(TPP)and Transatlantic Trade and Investment Partnership(TTIP). How China's foreign trade and investment handles the emerging rules and find the path to China's development turns to be a problem urgently solved. We need conduct a in-depth study on how to borrow foreign advanced practice and system and refine China's legal systems of foreign private equity fund. We need discuss how to make use of foreign private equity fund, a double-edged sword, both utilize it booster for small and medium-sized enterprises and limit its negative effects on industrial economics. The overall train of thought is discussing the legal supervision system and problems in the process of operation chronologically and putting forward the advices for perfection of supervision legislation. This dissertation is divided into four parts:The first part is summary of the foreign private equity fund. This part introduces the private equity fund and the foreign factors, thus the concept of foreign private equity fund. Combined with the property of foreign capital, the author clarifies the peculiar characteristics of the foreign private equity funds and its particularity in private equity investment. On the basis of the foregoing introduction, the author explains the necessity to supervise foreign private equity funds, which are to pave the way for the discussion below.The second part is the supervision of the admission of the foreign private equity funds. The author observe subjectival suitability regulations of the foreign private equity funds through two groups of participants of foreign private equity funds: qualified investors and managers. Via listing the organization form of foreign private equity fund for investors to choose, the author analyze legal regulations on the establishment of foreign private equity funds institutions. Based on these analyses, the author points out the problems existing in the supervision of the admission of the foreign private equity funds. For comparison, the author present corresponding provisions of the admission of private equity funds in the U.S. Finally, the author propose some legislation proposals on how to perfect the supervision of the admission of the foreign private equity funds..The third part is operating supervision of the foreign private equity funds. The author reviews foreign exchange management and tax policies in investment links and points out the problems. Aiming at the insufficiency of current foreign exchange management and tax policies regulations, the author presents some sound suggestions on operating supervision of the foreign private equity funds.The forth part is regulation of market withdrawal of the foreign private equity funds. From the perspective of comparative law, the author briefly introduced the withdrawal mechanism of private equity funds in the U.S. It consists of three sections:capital market, resale restriction and legislation promotion. Next, the author clarifies legal regulation and obstacles of market withdrawal of the foreign private equity funds. Lastly, the author gets inspiration from the withdrawal mechanism of private equity funds in the U.S. and make recommendations about regulation of market withdrawal of the foreign private equity funds.