On Research Of Regulation Of Private Fund In China

This paper is about the Private Fund, which is a new type of financial business in security market in China. At the present time, the Private Fund develops rapidly and has become an irresistible force in security market with its enormous quantity---about 1,000 billion. But there are plenty of problems on the operation of Private Fund, because it has not been legally approved by the government. It still keeps its position in the so called "grey zone", that is to say, it is still lack of necessary supervision from government and is still ignored by the capitol market. Therefore, it is urgent to frame the developing and operation of Private Fund at the legislation level.This paper is composed of three parts.Part one is about the introduction of Private Fund. In this part, on the basis of the analysis of the current market condition and manner of Private Fund management, the author places his emphasis on the discussion of the problems in Private Fund of China and discloses that the security market will probably not avoid the systemic risk if people don't regulate the operation of Private Fund or solve these potential problems in time.Part two is about the necessity of the regulation of Private Fund. Firstly, the author clearly defines the meaning of Private Fund discussed in the paper (that is an investment in security market) as well analyzes the traits of Private Fund in detail, distinguishing from other funds; in the end, the author expounds that the nature of Private Fund is a certain type of trust, All above statement can be seen as the necessary theoretical preparations for the later discussion in this paper; next, in this paper, it is the trend to take methods to regulate Private Fund and it is the inevitable choice for the renovation of the market system.Part three is about analysis of law environment and legislative suggestion of Chinese Private Fund. In this part, the author discloses the law space of Private Fund development in China, and puts forward legislative suggestion of Private Fund: 1 no necessary to set up Private Fund law; 2 detail analysis from six aspects to explain how to regulate Private Fund by the means of law.