Research On Development Issue Of Production-oriented Private Placement Fund

In 1949, Alfred ? Winslow? Jones founded the first world hedge fund in the way of private placement. Since then, the private placement fund has become an important investment tool in the world financial market. At the same time, the private placement fund in our country has developed fast and has become an important investor in the financial markets since 1980 years.In the absence of legal norms and policy guidance, China's private placement fund mostly focused on the securities and real estates and other hot markets, getting the speculative gains through illegal operations, which seriously interferes with China's economic development. While China's production sector is facing serious financial problems. Therefore, how to guide the private placement fund to invest in the production sector has become a major issue to be resolved for China's financial sector and is also the issue trying to be resolved in this paper.This paper introduced the concepts and classifications and the development theories of the private placement fund. According to whether the private placement fund invest in the production sector, it is divided into the production-based private placement fund for investment and non-production-based private placement fund for speculation.On this basis, this paper does a comparative analysis of the above two private placement fund from the form and operational characteristics. Then introduces the influences of the two private placement fund on the economic development: the production-based private placement fund can solve the financing difficulties of small-medium sized enterprises and the lack of financial support for high-tech industries and the bottlenecks of the industrial restructuring and upgrading. While the non-production-based one can play some active role on the capital market and resources allocation, but the negative effects are more prominent such as affecting the stability of the securities market and disrupting the securities running order of the real economy and even threatening the entire financial system's stability and increasing the financial market risks.Therefore,I propose to vigorously develop the production-based private equity fund, which lead the capital focusing on the non-production areas to the production areas to promote the social production. This paper analyze the development situation and problems of our country's production-based private placement fund. Then introduce five proposals:Firstly, the government departments must provide the relevant laws , Policies and financial resources support to actively guide the private placement funds into the production area. Secondly, establish the limited partnership-type production private placement funds to attract institutional investors, individual investors, large enterprises and foreign investors; thirdly, according to the regional development characteristics and industrial restructuring policies to establish the production-oriented private placement fund of regional-oriented, technology-oriented and industrial-oriented; fourthly, adopt the a sub-investment and reputation mechanisms to circumvent the production-based private equity fund facing the risk of moral hazard and project risks; fifthly, Choose to develop the property market-oriented production-oriented private placement fund to perfect their exit channels.