The Legal Supervision Study Of China PE

The fund is the life blood of the enterprise, the operation of enterprises will notbe maintained without fund, it can say the company ’s operation is carried out aroundthe capital. The enterprises want to expand production, the introduction of talent andequipment even maintenance all need capital. At this stage the main way of raisingfunds is through bank loans or IPO to the stock market publicly, but these two kindsof fund-raising is facing great difficulties, enterprises rely on their own strength tocome to IPO is very difficult, they need a large number of investment funds affordtechnology, management and investment which can be achieved listing. It can be saidthe traditional financing channels of the enterprises is becoming more and morenarrow,which in this background, private equity investment fund appeared in righttime.In recent years, private equity financing has become the three methods of theenterprise financing with the bank loan and IPO. Private equity investment is in swiftspeed of develop, which thanks to the vigorous development of China’s economybrought about by the rapid growth of enterprises and benefit from the liquidityfreedom of China’s capital market. In the future of the capital market, private equityinvestment will continue to develop, which is financing market diversification needs,but also the macroscopic surface and the capital market for private equity investmentopportunities. Many private equity investment funds in favor of the need forfinancing quality unlisted enterprises, access to the class of the equity of theenterprise, and then through the listing, mergers or acquisitions, transfer the shares orrepurchase of the company sell the shares, win huge profits.Private equity financing is a innovative system of broaden the financingchannels for enterprises, which has important significance to the enterprise financing.But as the private equity fund appeared in large numbers, a series of problemsappeared, such as the legal supervision of PE, in the final analysis is on private equityinvestor protection and so on. Since China is still lack of the basic standard of the PE,the corresponding supervision laws supporting is still not perfect, therefore, the legalregulatory issues on private equity financing will be the emphasise of this article,which will through the study of the foreign system,then produce some of my owninstitutional conceptions,which expect to afford some contribution to the developmentof China’s private equity fund market.