China's Venture Capital Model Of Development Research

The purpose of the paper:The development of the Capital Venture has enormous meaning for the progress of our country's economics, especially for the progress of the new economics. Follow the slump of the Nasdaq, it seems the appealing of the Capital Venture falling into a decline. But I think it is the right time to reconsider how to develop the Capital Venture in China, how to choose the appropriate mode of the Capital Venture, how to utilize the new finance type, so as to promote the science and technology. This is the motive that I write the article. The content of the paper:Part one : In this part I discussed the theory related to the Venture Capital. First I presented the concepts of VC. Different concepts illuminate the different mode of the development of VC. From which I summed up six traits about VC: It's risk is huge and it's period is long; The objects invested has the trait include high technology and science , innovation and specialization; It can create more profits; It's rights and interests are related; It's tactics in investment are combined each other; The quitting modes are diversification. Then I analyzed the constitution of VC.Part two: I research into the development mode of VC in the world, in which I take the typical country including America, English and Japan for example and then I compared the mode from the aspect of organization, capital resource, object invested, sustained by government, etcPart three: In this part I first analyzed the development of VC of our country. Second I researched the present mode of VC .In our country the main investor is government; The capitals are not mainly invested to the high technology industries, but ordinary industries; The exit is not expedite. So I analyzed the problem we faced.Part four: I expounded the conversion of the mode in this part. I think three points of the conversion should be done. The first one is the conversion from the type that the investment leaded by government to which introduced by market; Second the investing system should transform from Co. to limited partnership system. Finally I think we should set up multiplayer exiting mechanism to replace the single layer exiting mechanism.Part five: I proposed five pieces policy advises to accelerate the conversion of our country's VC mode. First, we should set up government sustaining system; Second, we should perfect the law and security system; Third, the capital market should be perfected too; Fourth, we should elect the institution to foster or inspirit and limit the investor; Finally the agency serving system must be constituted soundly.