Venture Capital In China System

Based on the reform of Chinese investment and financing system and the development of high-tech industry, the author of this thesis points out that the venture capital(VC) is not only necessarily, but also practicable. A perfect VC system is the basis and prerequisite of the development of VC. In this thesis, the author builds a structure model of VC and discusses the function and characteristic of the venture capital, VC market, VC institutions, venture enterprises, intermediary institutions, related laws and regulations and government. The advantages and disadvantages of the VC system are also analysed. How to develop the VC? And how to establish the system of VC? These problems had attracted the eyes of government, the enterprises and the researchers. I analyse the current situation of the factors of VC system and find there are six problems in the current system: the principal of the VC is not mature; the situation of VC institutions is in dilemma; the intermediary institutions have just immerged; the VC market is not completed; the laws on VC is not well developed and the role of the government is not clear. To these problems, I offer seven suggestions to improve the VC system. On this basis, I described the target of Chinese VC system : to improve the concerning laws and regulations in order to guarantee a good environment; the coexistence of government supervision and self-control of the industry; the small and meddle size technological enterprises are the micro-basis and droved by a regulated markets; under the support of the financial and intermediary institutions, the developing funds, industry investment funds, pension funds and large enterprises groups will become the principal of investment. The contributions of this thesis are: the concept, structure and functions of the Chinese VC system are firstly discussed completely and I also give some original and unique suggestions on the control system and law frame. All these suggestions are reasonable and practicable.