Legal Regulation Of Private Equity Funds To Participate In Pre-IPO Financing

As part of our country market economy, China's private equity funds is still in the stage of development. Industry system construction is not perfect,and relevant legal norms is missing.Especially legal regulation on private equity funds to participate in the pre-IPO activities is rarely involved.The behavior of private equity funds involved in the pre-IPO for the profiteering has aroused widespread concern in the society.The market risk,legal risk,and institutional risk inherent in it is also gradually becoming apparent.The voice for legal regulation and perfection is increasingly strong.Stating the operation mechanism of private equity funds to participate in the pre-IPO and the study of the system related,consulting the relevant experience of developed countries,considering our country's actual situation and the capital markets conditions, this paper attempt to discuss the necessity for the establishment of relevant legal framework,analysis the shortage and the way to perfect, explore how to regulate the behavior of private equity funds to participate in the pre-IPO.Research on the private equity funds to participate in the pre-IPO has important theoretical significance and practical value. Reasonable and effective legal regulation will develop a batch of mature stock market investors,which is in favor of the development of the capital market.According to this paper,we hope to make a positive effect on the stable development of the capital and to protect the interestos of investor.