Analysis of Regulations and Laws Related to Equity Finance

DOI: https://doi.org/10.62517/jel.202414511

Author(s)

Xiaogang Gu*

Affiliation(s)

Henan Institute of Economics and Trade, Zhengzhou, Henan, China *Corresponding Author.

Abstract

This paper focuses on the analysis of Regulations and laws related to equity finance. It begins by introducing equity finance as a new fiscal model emerging due to the challenges faced by the traditional land finance model. The model offers local State Institutions a new way to obtain revenue and promote economic transformation but also comes with its own set of challenges. The paper then details the regulations support for equity finance at the municipal, national, and local levels, including measures such as adjusting investment Regulations, issuing tax announcements, and implementing trial measures. It further elaborates on the legal provisions governing equity finance, especially in the context of state-owned financial enterprises and local fiscal funds. Finally, it discusses the current situation and challenges of equity finance, highlighting its benefits in reducing dependence on land finance, alleviating revenue-expenditure contradictions, and resolving debt risks, while also noting the reasons for its temporary inability to replace traditional finance and the problems it currently faces.

Keywords

Analysis; Regulations; Laws; Equity Finance

References

[1] Wang Shige, Yan Wanqing. Research on the Upgrading of China's Industries under High-Quality Development: From the Perspective of Equity Finance. Tsinghua Financial Review, 2024, (08): 79-81. [2] Zhang Yuanyuan, Xia Qiu. Research on the Innovative Development of China's State Institutions-Guided Funds. Southwest Finance, 2024, (03): 32-43. [3] Bai Yanfeng. The Historical Changes and Transformation Ideas of Local Fiscal Revenue Patterns. National Governance, 2023, (24): 15-21. [4] Zheng Fanghui, Fei Rui. Fiscal "Equity Investment" from a Performance Perspective: Contradictions and Solutions. Theoretical Discussion, 2019, (02): 44-49+2. [5] Yang Feihu, Wang Zhigao, Yu Bingwen. Data Elements, Data Finance, and Economic Growth. Contemporary Finance and Economics, 2022, (11): 40-52. [6] Chen Baodong, Pan Qiao. The Risk Manifestations of Local Debt, Debt Reduction Practices, and Path Selection. Finance and Accounting Monthly, 2023, 44(21): 146-153. [7] Lu Yangfan, Yuan Ke. State Institutions Regulation or Enterprise Autonomy: Conflict and Governance in the Reform of Fiscal Operational Subsidy Methods. Journal of Gansu Administration Institute, 2017, (04): 4-16+127. [8] Song Fanjun. Research on the Credit Risk Governance of Local Financing Platforms from a Transformation Perspective. Fiscal Science, 2022, (05): 65-78. [9] Huang Tao, Wang Zhiyuan. Research on the Legal Attributes of Equity Investment. International Business (Journal of University of International Business and Economics), 2013, (02): 118-128. [10] Zheng Chunyuan. Suggestions for Further Improving the Countermeasures of Fiscal Equity Investment Funds. Economic Forum, 2017, (08): 134-13.