Thinking Of The Development And Operation Of China's Private Equity Funds

Private equity investment fund is an innovative financial investment tool. Its development is connected to the development of the international capital market closely. Private equity investment fund plays an important role in accelerating the upgrade of industry structure, cultivating multi-hierarchy capital market, improving the structure of corporation governance, promoting the development of medium and small enterprises, and promoting the development of high technology. Practice experience in developed capitalism country and region can prove the conclusion, such as in USA, Europe, Japan.With the persistent and rapid growth of our economy, the reform of the separate equity has completed smoothly, then the circulation of all equity has realized. The reform eliminated one of the institutional obstacles in the development of our capital market. Since the year of 2006, private equity investment fund has developed greatly. But there are still many problems in its operation and development, such as faultiness of the law and code, the lag of related measures and specific management methods, faultiness of operation mechanism, strait ness of capital exit channel, faultiness of supervision system and so on. Aiming at the above-mentioned problems, this paper does research on the private investment fund from the following aspects, in order to promote the healthy, persistent and rapid development of private equity investment fund in our country.This paper assimilates the research production of private investment fund in foreign and domestic country firstly, on the basis, describes the general situation of the private investment fund, such as definition, type and characteristics. Then the paper reviews the course and status quo of development about private investment fund in domestic and foreign country, and analyzes the problems during the course of development in domestic country. Next, the paper analyzes the operation mechanism of American private investment fund, and further analyzes the choice of operation pattern of private equity investment fund in our country by studying the development experience of foreign country, combined with the actual situation in our country. Moreover, the paper does research on the mechanism design of private investment fund from three aspects, namely, investment mechanism, capital exit mechanism and incentive-restrictive mechanism.Finally, aiming at the problems and possible risks, especially moral hazard, during the development of private equity investment fund, according to the actual situation in our country, III the paper does research on the establishment of flexible and effectual supervision system from five hierarchy by studying the supervision experience of private equity fund in foreign country. Meanwhile, the paper puts forward corresponding supervision countermeasures in order to supervise the development of private investment fund in our country moderately. The supervision system and countermeasures will benefit to protecting the interest of investors, improving capital market in our country, and further promoting the steady, healthy and persistent development of private equity investment fund in our country.