Private Equity Fund Behavioral Research

As an important kind of institutional investors in our stock market, private placement of capital stock has been influencing the market greatly during its long-term development and function. In the past several years, there have always existed phenomena as manipulating of market by private placement of capital stock through speculating against regulations, which brought about great passive influence to the market. In the late 2001, our stock market dropped greatly. Private placement of capital stock represented by stock companies was forced to sell out their stocks because its capital link broke up. Large number of stock hold by institutions dropped greatly, which in turn worsened the stock market. The above consequences caused by the behavior of private placement of capital stock made more scholars and people concerning the market focus their attention on it.This paper chooses the behavior of Chinese private placement of capital stock as its research subject, and makes statement and analysis on its detailed behaviors by putting emphasis on its way of financing, operation mode, risk-controlling system, income allocation mode as well as the changes of behavior under new market circumstances. This paper also generalizes the marker effect brought about by those behaviors, and then analyzes the institutional origin of the behavior choice of private placement of capital stock in terms of new regulation economics. Based on the above, some policy suggestions are put forward. The content of this paper is arranged as follows: Chapter One: The Generalization of Private Placement of Capital Stock; Chapter Two: Basic Behavioral Features of Private Placement of Capital Stock and the Analysis on the Market Effect; Chapter Three: The Institutional origin of the Behavior Choice of Private Placement of Capital Stock; Chapter Four: Policy Suggestions.