A Study Of Limited Partnership In China Private Equity Funds

The revision of Law on Partnership Enterprises in2006finally makes the word’limited partnership’, which is still a new word in China, don the cloak of legalization.Due to its inartificial characteristic and predominant system, limited partnership iswidely used in the area of Private equity funds(PE). PE has become an importantorganization mode of Private equity funds in China, which also immensely promotedthe development of the industry of Private equity funds. The growth of Private equityfunds(PE) is lacking a well-established legal and investable environment because it isexotic. Many problems appear during the process.Keeping an eye on the development of limited partnership and Private equityfunds(PE), this article discusses about the development feature and open questions atthe present stage in China. Basing on analyzing the legislative background andevolution of Private equity funds(PE) in limited partnership, this text not only appliescomparative analytical method but also combines American advanced and matureexperience to approach this subject. I will put forward some suggestion and hope tocontribute to the growth of Private equity funds(PE) in limited partnership in China.This article can be divides into five chapters;The first portion mainly illuminates the definition and developing history oflimited partnership. I will put emphasis on analyzing the property of limitedpartnership. Pectination and review the courses of limited partnership’s developmentin China is also included in this section. In the second portion, how to use limited partnership in the realm of Privateequity funds(PE) will be analyzed. In the first place I will define and introduce threemodes of Private equity funds(PE) one by one. Through contrasting three modes, theadvantage of limited partnership as the organization mode in Private equity funds(PE)will emerge. Thereafter, i will card briefly on the development threads of AmericanPrivate equity funds(PE) in limited partnership and look into the causes of theadvantage of America over China.The third part, developing situation of Private equity funds(PE) in limitedpartnership in China is presented. Discussion on the characteristic during thedeveloping courses of Private equity funds(PE) in China, which including governmentleading foremost, pattern classification between general partner and limited partner,individual investor and so on. Conclusively, taking Anyi limited partnership forexample order to dissect the current situation in China.Part four resolves the open questions in development of Private equity funds(PE)in limited partnership in China. Problems include incomplete legal rules and escapemechanism, lack of tax policy, etc.Finally, the fifth part of the article is devoted to give advice directed towardspresent problems of Private equity funds(PE) in limited partnership in China. ImproveLegislation，completing escape mechanism and tax policy are comprised in thereadvices. It will help Private equity funds(PE) in limited partnership develop healthyand unceasingly in China.