Wednesday, December 15, 2010

Private fund will be put on legitimate coat China fund industry will come in spring

China Securities Regulatory Commission Chairman Shang Fulin 4, said: with private fund to strengthen regulatory constraints, strengthen, and deregulation, the promotion of innovative ideas, combined with the legislation of the legislature, a comprehensive revision of the Fund, in particular, to adapt to the realities of private fund development needs, drawing on the experience of international supervision, in accordance with the uniform regulatory requirements that prevent regulatory arbitrage principle, the establishment of appropriate private fund supervisory system for the asset management business coordination enabler.

Shang Fulin President, it describes the private placement will be put on legitimate coat, and the public placement Fund tongtaijingji. Since the introduction of a private fund of the competition mechanism, which would certainly contribute to public placement Fund institutional reform and innovation, China fund industry in the coming spring.

Jimin have been public placement Fund have complained that while public placement Fund institutional than private placement flexibility, many excellent public placement fund managers Jop private equity, public placement fund industry talent shortage is an indisputable fact. Second public placement fund management fees by fund size to extract, instead of the real performance is good or bad, it appeared in the bear market in jimin loss serious public placement fund management fees of just extract unreasonable phenomenon. I suggest that if only the public placement Fund's net worth less than $ 1, fund companies should stop receiving jimin ' management fees.

Of course, public placement fund performance as private fund also has its institutional reasons. Because the Fund Act, the public placement Fund has the lowest position (pianguxing Fund generally 60%), that is to say, even if public placement fund managers don't look back, and it is not possible as private fund that can evade all clearance, A unit of systemic risk. In this case, and no real performance pressure, for public placement fund managers as long as the net decrease in top ranking too, even if it is successfully cross the border, but the loss of or broad jimin!

For private equity funds, although some performance pressure, because if you do not, the Fund Manager will not be able to extract the management fee. Also has the advantage of institutional, private fund can not subject to the positions, and even destabilising. However, due to not go to the Sun, its placement in channel far as open public placement Fund, raised funds limit is private fund development and growth of bottlenecks, if the private fund under the regulation, enjoy the same public placement fund raised treatment, private equity and public placement Fund can grow in competing.

I think, on private fund the establishment of an adequate regulatory framework is very timely, which describes the private fund will go to the reception from behind the scenes, and the public placement Fund enjoys the common participation in the competition's legal rights. Private fund of legalized the public placement Fund is pressure is dynamic. The future of China fund industry's development of a milestone significance. 【 】

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