Research On The Legal Issues Of China's Sovereign Wealth Funds

Sovereign Wealth Fund(hereinafter referred to as “SWF”)is a special investment directly or indirectly owned by one nation.On Sept 29,2007,the only SWF of China--China Investment Company was established in Beijing.During the last ten-year development,China Investment Company has faced legal disputes frequently.The paper mainly analyzes the legal problems of China Investment Company before investment accession and puts forward legal suggestions to improve them.There are about 32,000 words in the paper.In addition to the conclusion,the five chapters are as follows:The first chapter is introduction.It introduces the background,status,ideas and method of the research.Innovations and shortcomings are also included in this part.The second chapter is the basic theory of SWF.It illustrates the concepts and effects of SWF and the establishment of China Investment Company,which will be a theoretical foundation for the next chapters.The third chapter is the legal problems of China Investment Company.First,the paper introduces the legal problems of China Investment Company itself,that is,low information disclosure,unscientific governance structure and unclear regulatory agency;Second,the paper introduces external problems,that is,fuzzy security review and severe trade protectionism of host countries and the low effectiveness of international supervision regulation.The fourth chapter is the legal regulations of SWF abroad.This chapter refers to the successful practices in transparency,regulation and supervision of SWF,which will be a good mirror for China Investment Company.The last chapter is the countermeasures of China Investment Company.To deal with problems itself,the paper puts forward three advice: enhance the quantity and quality of information disclosure,improve the governance structure and establish the regulatory commission of SWF;To deal with external problems,improving the international regulatory compliance mechanism is advocated.Also,international communication and coordination should be strengthened to unify the concept of national security and create a fair investment environment.