Study on Present Criterion and Superintendence of Private Funds in Our Country
|Keywords||private funds security market criterion superintendence|
Investment funds can be divided into private funds and public funds in accordance with the mode of offering. Private funds have created a kind of combination of risk and profit which is different from traditional ones. Contrasting to public funds, private funds are those which can meet the needs of specific investors and do not open completely to the public and receive less superintendence of the ?government. Private funds will become an important financial tool with the maturation of the market economy system of one nation.The private funds of our country grow up under the genuine demand of the market. Their scale far exceeds the public funds’ that they have a great influence on the security market of our country. Now, the private funds have aroused the solicitude of more and more persons and the problem of their criterion and superintendence has been the focus of economics circle, law circle and security circle of our country. It is an important task of the further development of the capital market how to make them become a steady factor. At present, stock companies have got legal identity in operating private-offered business and trust companies can also do it under the strict superintendence of People Bank of China. This paper is written just under such’background in order to do some attempt and exploration about the criterion and superintendence of the private funds of our country.This paper has 4 parts totally:Part 1: The author paraphrases the concept of private funds and compares it with other financing business. In a word, the essence of private funds is a kind of trust innovation product whose vitality lies in creating a kind of financing mode which is a combination of high risk and high profit. The outstanding feature of private funds is their property characteristic and they have changed the trust-deputy relation of investors and managers in public funds, so private funds have solved the problem of lack of owners which is extant in public funds.Part 2: As a mode of a combination of high risk and high profit, private funds play an important role in the capital market of western developed countries, especially insecurity and venture investment. Because of the qualification of investors is high, private funds is also called "richer club" in western countries. This part introduces the development, operation mode and superintendence of the private funds in western developed countries, which can make us have a clear knowledge of the present condition and problems of the private funds in our country and may give us some useful references.Part 3: The concept of the private funds in the capital market of our country has specific meaning which refers to all the non public-offered financing business. The superintendence of the private funds is very difficult for their diversity and concealment and they have brought a lot of problems to the stock market of our country. Also, the benefit of the investors of the private funds is difficult to be protected for its operation is often concerned with violation, such as "dope deal", "be the banker", "heel the banker". Therefore, the criterion and superintendence of the private funds has become an important task of the further development of the capital market of our country.Part 4: The present condition of the capital market in our country is at its initial stage, which shows mainly that too many non-market factors are joined in the development process of the market. The problem of the stock right structure of listed companies and the market segmentation has caused huge institution profit space at the stock market of our country, which forms the soil of violation. Therefore, the criterion and superintendence of the private funds of our country must be put under the development of the capital market. Due to the complexity of the private funds and the particularity of the capital market of our country, the development of the private funds will go though a way of "criterion from development and development from criterion".