Research On The Practice And Development Of Private Equity In China

Recent years, Private Equity develops quickly in China where the private investment market has become the most dynamic private equity investment market in Asia. As a financial innovation, Private Equity Funds usually make equity investment in unlisted enterprises. Private Equity Market has become an important part of global capital and financial market, making great contribution to global economics, especially to the American and European economics. Chinese government has attached great importance to the development of private equity. However, the Private Equity in China is still in the initial stage. There are many problems and difficulties in the practice and development. At present, the new economic and financial situation gives both opportunities and challenges to the development of Private Equity.This thesis first introduces the definition and features of Private Equity and explains how to operate Private Equity Funds. Then it describes the development of Private Equity Fund in foreign countries and concludes the experience. According to the development of Private Equity Fund in China, it analyzes the capital resource, organizational forms, investing performance and exit in China and finds out the defect and drawbacks. Taking the financial crisis and present policies into account, it analyzes the real situation for Private Equity Fund to develop. Lastly, referring to the foreign experience, we give the suggestion both to Private Equity Fund's operation itself and policies for government.