Research On Qualified Investor System Of Private Securities Investment Fund In China

Facing the unprecedented opportunity,private securities investment fund becomes the core which advances the positive development,as professional agency investors pursuing value investing in the long-term.Comparing with the robustness of the western hedge fund industry,the private securities investment fund in China is just beginning.It has a huge difference between investment management and risks essence.And we need to focus on the legal regulations which remain unresolved.Thus,it is functionally important to researching the qualified investor system as the core of private equity law system.The developed capitalism market at aboard such as USA has shaped an entire set of the definition of investment objectives and the system of investment certifications for qualified investor system during the decades.It is professional help with the research findings on the structure of private equity law.Using the historical analysis,jurisprudential basis couples the “Caveat Emptor” with “Let the Seller also Beware” logically,which includes origins and development of qualified investor system.The thesis builds up a contextual picture of legislative history of American private equity law system,which contains registrations exemptions of the Securities Act of 1933,the Supreme Court judgments “non-public offering” for SEC v.Ralston Purina Co.,and the publication of D Regulation by SEC.As a sort of special financial products,the securities form the invisible and abstract character,whose prices are decided by many factors and impacted by parallel market.The essence of issuing can’t be suitable for “Caveat Emptor”.And securities investors stand at a distinct disadvantage.The disclosure obligations registered by securities regulation,hence,turn into the crux of correcting information asymmetry between public offering issuers and investors.Without fait accompli or with minimum public interests during the issuing,then the system of registration exemptions which issues instant gratification to qualified investors is much fitter for private equity.The qualified investor system could reflect two legislative spirit including investor protection and accumulation of capital formation.It is concluded with defining the features of qualified investors of investment objectives standards and delimiting the elementary logic of certification standards,for instance,USA.Besides,the structure of regulations are carried out a top-down analysis of national laws,department rules,normative documents and self-regulation.The paper clarifies the legal issues concerning private funds and qualified investor system at home and then summarizes that the rules,about qualified investor of private securities investment fund,accord with the Securities Act of 1933 by which the elementary logic defines.Meanwhile,it outlines amendment to the system suiting our environment.At the start of our securities market development,financial regulation should even focus on protecting the investors.Last but not least,the paper structures our system of qualified investor of private securities investment fund and some kind of innovative suggestions offers on the aspect of developing multi-level marketing.