Study On The Legal Regulation Of The Folk Capital Involves Private Equity Fund

This thesis is not about an abstract and conceptual research only on private fund, but about the specific and pointed observation and appraisal on the current operation situation of private fund in our country, and combined with the author's internship experience in private equity fund company, a study is carried out based on the thread of finding problems, raising problems and solving problems. Doing a study on private equity fund, the contributor body of which is folk capital, the thesis differentiates and analyzes the competition between equity investment and illegal fund collection, with Hangzhou Hongding Venture Capital Investment Case and Shanghai Huile Case as typical cases. At the same time, seven problems in such aspects as capital raising, organization type, corporation governance and supervisory system of the intervention of folk capital in private equity fund industry are summarized and theoretically analyzed one by one. Finally, this thesis organizes the laws and regulations on the industry of private equity fund and the specific policies issued by the government. Meanwhile, an evaluation is made on the limitness and omission of the current legislation with the focus on the development of PE, and then suggestions on regulating are raised from both microscopic and macroscopic perspectives.Highlighting the value of private capital, this thesis states the necessity and feasibility to make use of private capital so as to develop private equity fund in our country as well as the inevitability of development of private equity (PE), and puts forth the organizational forms and operation mechanism to develop PE in our country, and performs a systematic research on the basis of a comparison between limited partnerships. This paper suggests that China Securities Regulatory Commission should be the supervisor of PE, and explains the four reasons in details.This paper puts forwards several methods of launching folk capital in China and ways and organizational modes of using folk capital to develop private equity fund, as well as the cultivation of folk investment subjects in China's PE market, and thereby explains how to use folk capital to develop PE fund in China. In a word, the healthy development of intervention of folk capital in PE industry is very significant to China's financial system or even the steady and sustainable development of China's economy. In the fields of VC and PE during the transformational period, a myriad of new questions require new legal regulations, and problems in folk financing that have harassed China's small and medium enterprises for a long time need to be coped with using new legal strategies on the basis of meeting the demand of the new age.