Research On The Working Model Of Private Equity In China

Private Equity market, as a part of China capital market, plays a significant role in building of China marketing economy environment, speeds to adjust China industry structure, promotes enterprises merging and industries adjustment, improves the efficiency of manufacture resources allocation, releases the pressure of excess liquidity, develops a multi-level capital market.China Private Equity marketing soared quickly, even though it started lately in the world. The investors are limited to invest in stock market because there are no more optional investment markets in China. On the other hand, the start-up companies and small - medium companies desire the venture capital. We should prefer to de velop the domestic private equity investment Firms. However, the oversea private equity has the more strength in recruiting the excellent managers, IPO, evaluation techniques and management experience than the domestic Firms. According to WTO regulations, China has to open the capital market door to the WTO memberships, China money market is becoming the global capital market. That is reason why I research and analyze China private equity investment fund in my paper.Firstly, compared to the developed countries private equity market with China private equity told us what advantages we should learn from them. Then, I mentioned the disadvantages in the developing of China private equity market. I stated that it is essential to build the legal, rational and efficient market structure and the healthy withdrawal mechanism of investment for the private equity investment market. The paper focused on the research and innovation of the market participants, the market credit system, structure, and ma rket supervision. It is most important to build a legal, rational and efficient private equity structure. I expressed some suggestions to develop the private equity market after learning the western experiences and the successful cases, combined with the current status in China.