Comparative Study On The Organization Form Of Public Funds And Private Equity In China

Mutual fund, as the main body of domestic fund market, has currently become the major market-driven force in China. Meanwhile, private fund, yet legalized, has gained mushrooming development as well in the market's grey zone. By far, the co-existence and co-development situation of mutual fund and private fund has been formed in China's securities market. The empirical research on mutual fund and private fund as well as the study on the existing problems, roots, and the main strength and development trend of its system evolution will play a decisive role to a sound, stable, sustained and orderly development of our securities market in the future.The fund organizational form is indicating the legal form of the setting up and existing status of mutual fund and private fund. As for the structure of form, there are tangible and intangible types. By using tangible type, a structure of corporation limited or limited Partnership would be adopted. Otherwise, by using intangible type, contracted structure would be adopted. This paper has concluded that corporate fund form ranks the most efficient among all the fund organizational forms through an empirical analysis of various types of forms in domestic market as well as a comparison of the efficiency, function, and structure of those forms. In addition, on the basis of the empirical analysis, this paper points out the possible evolution trend of contractual funds and corporate funds ( mainly limited partnership), the possibility of its system innovation under current restriction as well as the short-term, medium-term and long-term suggestions for domestic fund market entity on the transition of form to corporate type.