By Ba Shusong, Chen Hualiang　

Date: 2004/08/20

Abstract:  

Along with the rapid development in security investment foundations, the related-party transactions in security investment are also expanding, which is a connection between the foundations and related interest groups. Related-party transactions are based on the principal-client relationship, which is considered neutral, but with double-sided character, i.e., it can increase efficiency and reduce cost on the one hand, and also interferes with market orders and enrich the interest of the investors. A literature review is done on the foundation related-party transaction in the world. Definition of related-party transaction, the initiation, consequence, influences and management issues are covered. Supervision policies on related-party transaction in some countries are compared.