Discussion On Private Equity Investments And Related Law Issues In China

Private equity is a kind of operating form and financing tool for enterprises'investment, which adopts certain investing models to transfer shares of target enterprises or increase capitals to target enterprises, thus enables target enterprises to share the profits and bear risks in accordance with their investment and relevant terms among shareholders. With the rapid development of capital market these years, our domestic private equity investment has already grown up to be an important financial industry. In such background, law workers have already attached great importance to PE's legitimacy and compliance in its operation.This thesis will center around three main issues of PE in China, by starting from the definitions, characteristics and developing processes of private equity and based on the author's own experiences in relevant legal affairs of capital market. The three issues are our domestic legal conditions for PE investment, our current legal problems and affairs related to PE investment, and the conflict between PE progress and the present security legal system. In addition, the thesis also mentions the connections of overseas PE investment structure with home legal system, thus tries to figure out some good suggestions for the building of PE's relevant legal system in its progress in China.