Study On The Legal Supervision System Of China’s Private Equity Funds

Private equity funds have been considered as a "Rising Star" of the capital markets. After the rapid development in recent years, its scope continues to expand, and has become the second financing way only to bank loans and IPOs. Private equity funds in China can be traced back to the1980s. After30years of market experience, private equity investment is more mature. However, the legislative and regulatory status quo of China on private equity funds is lagged far behind in its development and scale, and it has become an important factor for further development of the shackles of private equity funds. Accordingly, on the basis of experience from foreign advanced supervisory experience, combining with our national conditions, this dissertation analyzes and explores the regulatory status quo of China’s private equity funds and then put forward a sound proposal.This thesis is divided into the three parts of introduction, body, conclusion, of which body part is divided into three chapters:Chapter Ⅰ is the introduction, which described the basic theory in this part, such as the background and significance of the subject, domestic and international research profiles, research methods, and so on.Chapter Ⅱ deals with the necessity of regulation of private equity funds. This chapter first analyzes the general theory of private equity funds, including its content, features, operating mechanisms, organizational forms, through the regulation of private equity funds. On the basis of the interpretation of private equity funds, the significance and necessity of regulation of private equity funds is deeply discussed, and its regulatory targets is further identified.Chapter Ⅲ takes the United States as typical, and detailed analysis of the regulatory system of the country’s private equity funds has been done. To get the progress we have to open our mind to the world and grab the essence of good system. The United States is a country with developed private equity funds. Its regulatory system is also very mature. This chapter starts from the history of the U.S. private equity regulation and centers on reasons for its shift from loose supervision to strict supervision. On the basis of the analysis of the outstanding characteristics of private equity funds within the country market, its investment and regulatory system is further analyzed. Chapter IV tries to study the building of regulatory legal system of China’s private equity funds. This chapter first analyzes the many inadequacies of the regulatory regime of the current private equity fund. On the basis of drawing on the regulatory experience of the U.S. private equity funds regulation, the study puts forward that the "appropriate supervision" should be used as the basic principle. A combination of government regulation and industry’s self regulatory regime should be treated as the regulatory system. The last chapter gives specific advice on supervision and regulatory of private equity funds from the two aspects of market access and fund investment behavior.The last part is the conclusion, which summarized the results of the thesis, and expressed the expectation for the promulgation of the legal system on supervision of private equity funds.