China Private Equity Investment Fund Regulatory Issues For Study

Recently, based on high domestic economic growth rate, private fund, which origins from listed companies, individual investors and foreign hot money, is spurring a sudden increase in Chinese stock market, industry investment and private equity investment fields. Based on the development actuality of the private fund in China, this thesis analyzes the problems and defects in the aspects of operational management and legal supervision. Furthermore, referring to the developing patterns of the private fund in overseas mature markets, this thesis attempts to find out a scientific developing direction of the private fund in China.With the essential feature of the closed issuance and the important characteristic of the strong ability of anti-risk, Private Fund is becoming a significant force in China stock market. Developing private fund could help to meet the various requirements of all kinds of investor and make the investor structure of our stock market improved accordingly. At the same time, it also could help to boost the risk preference difference of the market participants and, consequently, enhance the market liquidity.Developed in China for several years, private fund has been expanded to a certain scale and possess strong competence in China securities market. However, without a specific legal status, private fund encountered a lot of problem during its development in China, for example, offering and risk management. The legal issue have been become a bottleneck of the development of private fund in China. Through analyzing on developing pattern of the private fund overseas and reviewing the evolution of public fund, as well as researching at some representative problems of the private fund in Shanghai and Shenzhen, this study discusses some ways to conquer the obstacle in the development of private fund and put forward some specific measures from the aspects of legal supervision and operational management.In a word, based on giving the legal status to private fund, which is distinguished with the status of public fund, we should encourage private fund to enter into the competition in China capital market. We believe it will contribute to the prosperity of the China economy.