Abstract:

There are 700 billions underground private placement funds in our country. If the underground private placement fund hasn't been legalized, it would seriously threaten the profit of many investors and the stability of financial market, and even harm the economical development and the social stability. The legalization of underground private placement fund is in accordance with the direction of farther opening of financial market. But it is a systematic work; we need pay more attention to efficiency, investor's profit, the stability of market, especially pre-consciousness, in order to leave enough room for the future development of market.

Key words: China, private placement, legalization