Studies On The System Of Qualified Investors In Private Equity Funds

Private Equity has been a mature international investment tool which is also inrapid stage in China. But there is no special law against private equity, which leads tounsmooth development. The situation is revised with announcement of the draft ofsecurities investment act in the early of2011. But the draft has not developedperfected system. If this continues, it is neither good for the development of privateequity, nor for the protection of investors. So the paper is mainly about how to designthe system of private equity in order to protect the investors at the basic of learningother countries’ rules. I mainly use comparative analysis and normative analysis.There are five parts in the paper.The first chapter is Introduction. It points out the research background purposeand research performance at home and abroad. The second chapter is the relativedefinition. It describes what the private equity is, then compares the privateplacement、industrial Investment Fund and venture capital fund. Finally, it analyzesthe necessity from the aspects of defending the stability of the market、guardingagainst the occurrence of the market risk and the private equity itself. The thirdchapter proposed the legal issues of the regulation and the disadvantages. The forthchapter introduces the related laws and regulations of other countries and areas andthe enlightenment to China. The fifth chapter designs how to establish the system ofprotection in China. It puts forwards the legislative ideas, and constructs the accesssystem from aspects of quantity and quality. The resale of private issued securities isbanned in order to protect the interest of the investors. At last, I suggest setting up therelevant trade self-discipline mechanism, which may help the private equity to realizeinternal supervision.