Chinese Private Equity Fund Research

This paper, attempting to set out from realistic state of Chinese Privately Offered Funds (CPOF), analyses the reasons of it's emergence firstly, then, according to it's operation characteristics, sets forth the requirements for CPOF to operate effectively and points out a series of issue in the CPOF industry. At last, the author hopes to make a more objective appraisal on Privately Offered Funds in our country, and puts forward some suggestions under the limitation of personal ability. This article is divided into five parts:The first part introduces the concept of Privately Offered Funds (POF), it's characteristics compared with Publicly Offered Funds, Privately Offered Funds overseas, the achievements of others, and the method the author used as well.The second part describe the history of CPOF roughly, and highly introduce the current situation of CPOF, including it's scale, organizational forms, investment orientations, ways of distributing profits, controlling mechanisms of moral risk, term arrangement and main business procedures, etc.The third part analyses why CPOF emergence from the angles of demand and supply, and sets forth various kinds of conditions needed in effective operation of CPOF, including requisition for the structure of CPOF market, requisition for relevant regulations, requisition for administrative skills and varieties of investment instruments, requisition for the persons involving in the business of POF.The fourth part points out a series of issue in the CPOF industry, including legal problem, problem of propensity to investment, risk control issues, problem of illegally promising benefits, problem of listed company involving in entrust, etc. And emphatically analyses the distribution way of guaranteeing profits, including the reasons of it's emergence, the economics principle behind it, it's credit risks and existing problems.The fifth part, from different aspect, analyses the impacts of CPOF on the whole economy, including the impact on investors, the impact on the target of investment, the influence of security market and financial institutions, and, in the last provides aseries of suggestions from making laws to supervise to making policies to lead.