Research On The Legal Issues Of The Effectiveness Of China's Valuation Adjustment Mechanism

The common contractual arrangement of the Valuation Adjustment Mechanism as a private equity investment is an important means to solve the problem of information asymmetry between investors and target companies,and also the need for valuation adjustment.The Valuation Adjustment Mechanism is widely used in the international investment market.However,in China,the legal effect has been continually disputed.Although the first case of the self-gambling agreement has basically established the effectiveness of the gambling at the shareholder level and the attitude of the gambling at the company level,the theoretical circles have always had different views.In practice,there are also standards for case determination.The situation of one.Therefore,this article will study this issue.Starting from the meaning of the Valuation Adjustment Mechanism,this paper points out that the nature of the Valuation Adjustment Mechanism is an unnamed contract.Later,the article sorted out the theory of the effectiveness of the Valuation Adjustment Mechanism,and compared with the relevant legal norms and practices outside the domain,it was concluded that China could introduce the preferred stock system in the legal norms.After analyzing the status quo of legislation,judiciary,law enforcement and industry practice of China's legal regulation of Valuation Adjustment Mechanism,this paper concludes that there is a lack of superiority law in China's Valuation Adjustment Mechanism,different judicial decisions,regulatory authorities denying their effectiveness and internal confusion in the industry.And other issues.Finally,this paper proposes that the legal regulation of the Valuation Adjustment Mechanism should be carried out in three aspects: legislation,law enforcement and justice.In legislation,the Valuation Adjustment Mechanism should be included in the scope of a well-known contract,improve the preferred stock system,and improve the administrative regulations of the CSRC.In the judiciary,a referee concept that respects the autonomy of the business subject should be established,and the refereeing criteria for the Valuation Adjustment Mechanism should be clarified.In law enforcement,the CSRC should strengthen the guidance and supervision of the Valuation Adjustment Mechanism,so as to improve the legal regulation of the Valuation Adjustment Mechanism.