Reearch On The Legal System Of China’s Venture Capital

In1985，Venture Capital appeared in our country for the first time. After nearly30years of development, venture capital has been gradually mature. As the development ofventure capital in China is not perfect in all aspects, we must learn from the successfulexperience abroad, and also gradually establish a set of effective policy mix andmanagement mechanism according to the basic national conditions in china. Of course,good venture management needs the supervision of the government and the law, it canbe more effective. Meaning while venture capital system formed by venture enterprise,venture capitalists, investors and intermediary agencies and government, Besides,Venture capital must be supervised because high-risk and high-yield investment need nomortgage, no repayment.Focused on the analysis and acquaint of venture capital as well as legal system ofventure capital supervision, referring to the legal institution in the same area of the USAJapan, this article further discusses the necessity of legal system of venture capitalsupervision and the method to improve the venture capital system in the risk market.The first part of this article mainly deals with the concept, principles and significance ofventure capital supervision. Next, the second part expounds the present issues ofventure capital based on legalization of venture capital. Then, the third part analysis thelegal system of venture capital in two significant countries, Japan and the USA, andfollows the measures dealing with the same situation in our country. At last, the forthpart discusses the problems of the venture capital situation in our country based on thefundamental realities of our China, as well as the measures of improve the venturecapital system.Venture Capital is an innovative mechanism to adapt to the new economicdevelopment experienced half a century of development, and it has been developinglonger than half a century in the USA which as the representative of developed countries,and achieved a brilliant success. Has fully recognized the need of venture capital, Chinais striving to promote the comprehensive development of the venture capital.