Study On Regulations Of Private Financing

Private financing appears widely in our country, which contributes greatly to theeconomic development. However, many problems during the process still exist which includelegalization of private financing, standardization of its forms, fictitious action, calculation ofinterest together with impairment of state macro-regulation under its influence. Thecountermeasures are as follows: to begin with, legislate for private financing to clarify itslegal status, improve the monitoring system in order to obtain enough information which canbe used to guide and supervise the private financing, to refine the main part, scope andmethods of the system. Then, administrate the written form in a standardized manner as wellas combine the practical situation shown in economy with advanced telecommunications toformulate modern transaction forms. Finally, regulate private financing by legal means, andprevent against fictitious action, adhere to the policy that view economic penalty as moreimportant than criminal punishment.The whole paper is made up of four chapters. Having introduced the denotative andconnotative definitions for private financing made by current scholars, the first chapter alsoenumerates the types of private financing and presents the great contributions it has made forthe economic development, which aims at arousing public attention. While, in the secondchapter, overview on development as well as advanced monitoring experiences in severalcountries such as Britain, Germany and the United States are equally described. The authorhope that a more effective and reasonable managerial mode can be built after assimilating theessence of those experiences and drawing conclusions over the related contents so as to guideand promote its development along a sound and orderly track and make even greatercontributions to the economy.The third chapter lists current laws and regulations towardsprivate financing and lays special stress on existing problems, for instance, legalization ofprivate financing, fictitious action, forms’ standardization, interest calculation along withimpairment of country macro-economic control, etc. Therefore, it is absolutely critical tounderstand and handle problems in correct ways for only when we scrupulously analyze the problems and know where the rub is can we settle them through right analysis.In the fourthchapter, on one hand, the penman advise to formulate laws for private financing, to establishthe requirements for investors, to clarify the monitoring scope and to regulate its writtenform. On the other hand, it is of utmost importance to create the monitoring system and makethe subject and scope clear. At the same time, implementation of the supervision model ofcategorized management matters. To sum up, the settlement for fictitious action will mainlydepend on the combining method towards before or after the fact rather than relying solely onpenalty afterwards. Meanwhile, the development of self-discipline organization should beexpanded.