Research On Perfecting Legal Regulation Of Private Equity In China

Private placement fund originated in1990s in China, but it flourished in a few years. It injects fresh vitality for our capital market as a new investment tool, to promote the development of the market. However the legal regulation of private placement fund has not set up. Because it is short of supervision, and private placement fund its own form of hidden operation, long-term in the ground state, the potential financial risks of the fund becomes a threat to market stability. Therefore, It is significant to construct the relevant legislation of private placement fund.There are four parts in this article.:The first part shows the theory basis of legal regulation on private equity--the game theory, and the importance of it as well, such as protecting the investors, securitizing the capital market, promoting the healthy and orderly development of private equity and so on;The second part sorts out the existing laws and regulations relating to the supervision of private equity in China as the following way:the establishment of access, organization form, the scope of investment, exit mechanism;The third part finds out the present problems of the legal regulation on private equity according to part two;In the last chapter, it gives some suggesting solutions according to the analysis of the current problems in legal regulation on private equity. The most important is to make PE legalization, then offer some improving methods from access, approved, information disclosure and some others parts.