Research On Private Equity Funds And Financial Innovation Of Binhai New Area

Since the 1970s, there has sprung up a new trend in international capital flows, which is private equity funds (PE). It is obvious that more and more private equity funds going to global. Private equity investment has become an important component part in International capital flows.With the new trend of international capital flows, it is insufficient for Binhai New Area which absorbing the direct investment of the foreign capitals simply by cheap labor and favorable comparative advantage of the policy. The Binhai New Area in its traditional mode of financing, the endogenous financing is too large, too low proportion of direct financing, inadequate financing of scientific research, less than the introduction of foreign private capital, foreign investment in the financial industry is too small, and so many defects can not meet the development of SMEs. To the reality of Binhai New Area, if it wants to win in a new round of regional competition, we must deal in the system and innovative products to attract the international private equity funds, thus changing Binhai New Area comparison of a single mode of financing. For the development of SMEs to provide more financing channels, the Binhai New Area can also use the introduction of innovative products to further attract international capital on the financial industry.For the new trend in International capital flows, the article first introduces different private equity funds participants in different countries, and the mode of operation and other basic conditions. Secondly, with reference to foreign financial innovation and market experience, discusses innovative financial model of private equity funds in Binhai New Area, and design up two specific new financial products: The listed of private equity investment funds and special risk high-yield bonds. Finally, the article discusses the risks of innovative products, which is in order to prevent risks by establishing models of the risks, and put forward strategies in the research of risk prevention.