Legal Risks And Prevention Of Private Equity Funds In China

In the field of financial investment, it shows that investors are, in principle, capable of structuring their particular investments according to their own preferences; As private equity funds to maximize profits, excessive leverage, insider trading and price manipulation to make it easy to produce a great deal of potential risks, there are a range of governance problems and risks that could be potentially hazardous for some classes of investors. It contract society to discuss that should the private equity fund be regulated? We examine the circumstances where existing industry codes and legal risk prevention tools can be used to address the problems that arise in relation to private equity activity.This article analyses and makes a research on the financing, investment, management and exit mechanism in the operational process of private equity fund. In the end, the author puts forward a suggestion to establish a integrated regional development. Improve to updating financing structure, widening financing channels, establishing financing investment risk and technology evaluation systems, establishing the OTC market and improving the structure of the capital market.