Research On Establishment Of Venture Capital Market In China

In the time of knowledge economy, high-tech industry has become the engine of economic sustainable development. As a result, many countries including China have turned to it when making economic developing strategy. However, due to the high risk and the constant demand for the fund during the period of its development, high-tech industry can hardly get sufficient financial support from traditional channels, which try to avoid various risks. Financial barrier has appeared in the development of high-tech industry. It can't be cleared up unless some innovations are made. Venture capital market, which is one of the most notable innovations in finance, can eliminate the barrier and provide sufficient fund for the development of high-tech industry.Venture capital market is a whole market system. The success of venture capi tal market depends on an efficient exit mechanism, by which a high capital mobility can be maintained and the amount of venture capital can be multiplied. Venture capital market is the best place to fulfill it. The venture capital market has different levels to provide fund for high-tech enterprises in different stages.As for China, many achievements have been made in high-tech field, few of which can be put into large-scale production. Without an efficient support from venture capital, China's high-tech industry has lagged far behind U.S.A. and European countries. It is imperative for us to develop our own venture capital. Most important of all, a perfect venture capital market should be established. Considering the special circumstances of China's traditional stock market, China's venture capital market can't be established in full compliance with other countries.The dissertation consists of seven parts. The first part introduces the subject, actuality, method and tentative creation in the research. The second part describes function of venture capi tal market and explains relative theories. The third part analyzes the mechanism by which revolutionary firms grows in venture capital market. The forth part analyzes the success and failure in American venture capital market. Thefifth part discusses the purpose of the establishment of venture capital market in China .The sixth part analyzes the development of venture capital market in China, and makes out an model for development in future .The last part is the most important one in the dissertation. It points out three thoughts on how to establish China' s venture capital market: one is to make full use of the main-board market; another is to set up over-the-counter market aimed at high-tech enterprises; the third is to build the second-board market. Only in this way, can a perfect venture capital market system with Chinese characteristics be established.