Study On Operation And Supervison Of Private Fund In Our Country

Private Fund, in contract with public offerings, refers to un-publicly offered funds forfew organizational investors to raise fund. It does not mean illegal and under-the-table fundswithout supervision.Private Fund originated from private banking business in the west. Gradually, theirclients scope broadened, and serviced improved step by step. Currently, the total amount ofprivate fund globally has exceeded 100,000 US dollars. It has become a very importantfinancial service, such as the internationally well-know investor Warren Buffett ' sBerkshireHathaway, GeorgeSoros's, Hedge Fund and so forth.The Private Fund in China completely self-developed in a progressing financial market,and stood out in the active fund market already. The analytical reports from central universityof finance and economics on 2001 China Private Fund Development Status shows that, inyear 2001, the private fund has accounted for 30%-35% of the total investing fund in market,which doubled the public offerings, namely 600 to 700 billion RMB. The existing of privatefund in China has become an un-neglectable fact.Until now, China has not had any definite laws or regulations for private fund, even leftunclear about the validity of its existing. However, the forms of private fund in market are notin standard;there are not any clear transaction regulations;no appropriate hedging techniquescould be employed then and so forth. It is obviously critical to improve the fund market forthe existing huge amount of private fund to obtain a healthy and sustainable development.In sum, the purpose of this thesis is raise proposals for the healthy and sustainabledevelopments of private fund in china by analysis of the necessity of regulations on privatefund, and then applying the relevant experiences obtained in western countries to the currentstatus of private fund in china, which also present the innovative points of this thesis.This thesis is composed of four sections. The first chapter is a brief introduction onprivate fund. The second chapter is a summary of private fund development in westerncountries. The third chapter introduces the current status of private fund in china. The finalchapter raises preconditions for private fund going public, regulations for transactions, andsuggestions on supervision.