The Supply Of Venture Capital In China: Legal Predicament And Legislative Countermeasure

The current world has entered a new era of intellectual economy. As the core of intellectual economy High-tech industry, which is one of the biggest and most important economic powers of any advanced economy, has become a pillar of economic development gradually. In comparison with those traditional industries, high-tech industry is with the obvious characters of high input, high risk and high income. Compatible with the "three-high" character of high-tech industry, a kind of new financingmechanism--venture capital. Venture Capital, its abbreviation is "VC", is a kind ofinvestment a behavior to offer the capital of stock right to new extremely potential enterprises or the small and medium-sized enterprises (mainly about new high-tech enterprise).It is proved by the economic practice of different countries that the development of venture capital trade is the key to realize high-tech industrialization.Venture capital in China started with its development in the 80's in the 20^th century. After almost twenty years, venture capital is still in start stage totally. Due to some unsolved problems in venture capital development, the status of venture capital in china is not ideal. The imperfection of capital supply mechanism is one of the factors that restrict the development of venture capital in china. It is a question for discussion that how to solve this problem.This thesis is composed of five parts.Part I Generalization of venture capital. This part mainly demonstrates briefly the meaning, characteristic and subject of venture capital.Part II Analysis of venture capital provider. To analyze and find more providers of venture capital is the key point to solve the problem of the absence of venture capital. The providers of venture capital in China mainly include enterprises, banks, pension funds, insurance companies, foreign companies and single investors.Part III The legal predicament on the supply of venture capital in China. Although the latent supplies on venture capital in China are very rich, the effective supplies are quite absent. The flaw of legal system creates this problem. Though reviewing legislation in our country, I think there are two problems which cause this problem. The first one is the flaw of venture capital admittance system; the second one is the defect of related legal system of venture capital.Part IV The review of overseas related legislation and regulations on venture capital. This part gives an investigation on U.S.A., Britain, Japan's legislative state, and analyzes those successful experiences that promote the development of venture capital, and our country can draw lessons from them.Part V The countermeasure to improving legal environment of supply of venture capital in China. Confronting those present problems, this thesis suggests some corresponding countermeasures: the first one is to improve venture capital admittance system; the second one is to perfect tax revenue stimulation system; the third one is to constructing credit guarantee system; the forth one is to improve venture capital withdrawal mechanism.