The Research Of Legal Issues About Supervision Over Private Equity Investment Fund In China

Private equity investment fund,as a product of modern financial market innovation,has been playing important role after rapid development in Chinese securities market.However,the history of private equity investment fund in China is not long.it is challenging for the government and market to learn how to supervise and guide its steady and orderly development.At present,due to lack of adequate regulations of private equity fund,it is hard to meet the demands of the rapid development of private equity sector,resulting in many illegal problems in practice.Therefore,it raises social concern about how to regulate the private equity investment fund appropriately On November 1,2015,Xu Xiang who known as "Chinese private equity star",was arrested after a series of judicial investigation.Xu Xiang and accomplices were accused by raising funds illegally,trading based on inside information,and manipulating of the securities market.In this case,the judicial branch determines their actions as illegal fund-raising.Main reason is that Xu Xiang and accomplices are found guilty on the way of raising funds,selection of qualified investors,registration of fund managers,disclosure of fund information.Therefore,it is necessary to start research from these four aspects in order to avoid the recurrence of the"Ze xi case".Based on these findings,this paper consists of five parts:The first part introduces the"Ze xi case",which summarizes four problems of legal supervision of private equity investment fund.The second part analyzes the related problems in legal supervision of private securities investment fund raising mode.With reference to the regulation of foreign private securities investment fund,regulators should strictly limit the private equity fund managers raise funds from public in the form of advertising.The third part outlines China's current legal supervision over qualified investors of private securities investment funds.By referring to foreign experience,qualified investors need to have certain assets,knowledge and investment experience in order to prove that they have ability to bear the market risk.The fourth part analyzes the problems existing in the registration of fund managers in China,and puts forward corresponding suggestions for improvement by referring to overseas regulations of private equity fund managers.The fifth part is related to the legal supervision of information disclosure of private equity investment fund.The information disclosure regulation as the key rule in capital market structure would eliminate information as ymmetry between people and investors,prevention of adverse selection and moral hazard issues.Current information disclosure regulation has many problems.Through the analysis of these issues and reference of the mature foreign regulations,we put forward some suggestions on the legal supervision of private securities investment fund information disclosure in China.