Study On Private Equity Funding In China

As the foundation of building multi-level capital market, Private Equity Fund has attracted enormous attention of entrepreneurs and Academic researchers along with its rapid development and remarkable performance on a global scale. On the other hand, as the development of Chinese capital market can't satisfy the demand of Chinese economy at present, developing Private Equity Fund is the best way to change such a situation. Based on these reasons, the theory research of Private Equity Fund is becoming a popular topic in China.There have been many articles studying Private Equity Fund. But few of them has used the theory of Industry Development to deeply study the emergence and development of Private Equity Fund as well as its vital role in the development of the other industries and even the entire economy. To this point, this article is a new attempt with both academic and practical meaning.This article is divided into four parts. The first part starts with the introduction of the foreign and domestic research, and then elaborates the purpose and general idea of this article. Based on the view of connotation and characteristic of Private Equity Fund, The second part analyzes both the development reason and development value of Private Equity Fund from three perspectives: Macro, Industry and Micro. Meanwhile, this part studies the positive effects of Private Equity Fund on the emergence and development of other industries using theories of The Growth Cycle Of Enterprise Finance, Industrial Structure Optimization and Match Cost. Started with the compare of international Private Equity Fund development progress, the third part discusses the actual value of Chinese Private Equity Fund market, based on which, it also analyzes the status quo and problems of Chinese Private Equity Fund. The last part of this article offers some suggestions for the development of Chinese Private Equity Fund from three aspects: law and policy, operation mechanism and market recognition.This paper initially established a research framework of discussing Private Equity Fund from Industry Development view as well as offers some suggestions according to the actual situation in China. Therefore, it is not only useful for academic scholars and practical workers who are focus on Private Equity Fund area, but also offers some references for researchers who would like to apply Industry Development theory to study other similar majors.