Study Of Private Financing Law

To the great extent, the competition among countries in the nearly future wouldbehave in the form of competition among enterprises. It has direct relation to thefortune and future of our country to bring up a group of enterprises with mightcompetition as IBM, MICROSOFT, HP, SIEMENS, NOKIA, NESCAFE,UNILEVEL, GE. The capital expension, namely financing, accompanies the growthof enterprises. The present laws relating to the enterprise financing is designed in theearly days of setting up the capital market pursuant to the style of IPO and listing.Nowdays, the privately-operated and high-technology carve-out enterprises arebooming and have become an important part of economy, their growth must beaccompanied with many financing activities.In the present government-controlledcapital market, two important financing methods-bank loaning and IPO are hardly toutilize for privately-operated and high-technology carve-out enterprises. Longing forfinancing leads to the set-up of unofficial finance market. Under the strong control ofthe government, the banking and stock market are in a plight and the people's banksavings need to be diffluenced. It shows that the marketization of financing system isnecessary to China.The first chapter of this paper compares the advantage and function of publicoffering and private offering, and introduces the financing requirment of enterprises indifferent periods and the matching relationship between periods of enterprises andfinancing methods, finally gets to the conclusion that private offering financing isimportant to enterprises. The second chapter shows the present status of law systemrelating to private offering in our country. It is also shown that as the governmentcontrols the flowance of capital, the space for enterprise financing is very limited.Itleads to the plightness of Chinese capital market The third capter provides referrenceto the leagal envision in the introduction to the system of common private offering,nuisance issuance priate offering and private offering to employees in nuisanceissuance in America, and the practice in Japan, Taiwan of China .The fourthintroduces the functions of private offering and sets forth the legal envision toenterprise private offering system in four different parts. The conclusion part sums upthe above disserations and viewpoints and appeals that the law system should respondto voices of loosening the restriciton to financing system.