Abstract:

Since 1990s′，private placement fund has expanded rapidly in China，while the government is unable to supervise private placement fund effectively.The two factors thus have resulted in some negative phenomena in the operation process of private placement fund，such as: non-standardized operation，insider dealing for profits and distortion of investment concept.The supervising mode of private placement fund in foreign countries and regions may provide some lessons for the legalization of China′s private placement fund management.The present paper holds that timely measures should be taken by the legislative branch of government to make and revise laws concerning private placement fund.The author also suggests that stricter requirements on market access and issuance of private placement fund，more standardized information disclosure mechanism，and more reasonable interest distribution will help to legalize government′s supervision on private placement fund.All the above undertakings are aimed to promote China′s capital market，restrain speculation and to achieve the transparency of private placement fund.

Key words: private placement fund, insider dealing, market access, information disclosure, interest distribution