Development Of China's Private Equity Funds

Private equity is an important financial innovation in the field of international financial.Since the first private equity corporation was established,it has developed rapidly into one of the most important investor in the world today.Private equity not only provides a trench of high profits for investors,but it provides effective means of financing for companies which need capital.Private equity has played an important role in the process of economic development in developed countries,and it is rising increasingly in developing countries.In recent years,private equity growing rapidly in China,so China has become one of the major markets for private equity all over the world.Our government is paying increasingly attention to the innovation and development of direct financing means. At the background of industry restructuring and building an innovative country,the development of private equity is in an important period of opportunities.Firstly,the thesis discusses correlation theories and development tendency of private equity.The category of concept,characteristics and the form of organization of private equity was expounded.Then it analyses its effect,efficiency and the logic of innovation on the basis of finance theory.According to the status quo of international private equity development,and the development tendency of private equity was forcasted.According to the status quo of development of private equity in our country, the thesis analyses the foundation of development of private equity from the following respects as macro economy,supply and demand for money, policy and legal environment and capital markets.Then points out and analyses problems of private equity development in China,includes external environment problems such as shortage of multi-level capital market development,legal system are not perfect,and operation mechanism problems in itself as type of organization,imbalance of financing structure, hidden trouble in the process of invest and so on,and some regulatory problems.The thesis finally proposes countermeasures in accordance with the problems in the process of private equity development in China.The countermeasures are as follows.To construct and perfect legal system and multi-level capital market,to improve external environment. Financing structure should be optimized,improving the level of investment, choosing the applicable organizational form,improving private equity operational mechanism,and constructing perfect supervision system.