A Study On China PE Market Supervision

Private equity (PE) supervision is still a problem that should be solved in ourcountry investment market.After the2008worldwide financial crisis, the capital market gain its prosperity in2009as the Growth Enterprise Market (GEM) opened. At the same time, numerous PEbecame gradually known, even scramble for, and PE market was hot. Regulatoryissues have also become the industry hot topic.Through the PE market supervision based analysis of the problem, namely thecharacteristic of PE essence and development present situation, introduction of PEgeneral operation flow, brief summary of our country PE institutions, industry, policyand development characteristic, this article puts forward the necessity of theregulation of thinking. Through the PE market supervision experience of developedcountries, neighboring countries present situation as well as other domestic financialindustry regulatory experience to carry on the comparative analysis, this article putsforward views for China’s PE industry regulation. The author thinks, supervisionitself is not absolutely necessary, but at least in the present stage, it is necessary andthe key is how to supervise. Considering " regulation and self-discipline" mode toregulate China’s PE industry development should be our country PE regulatory idealchoice, but the inevitable result of supervision and self-discipline to coexist is that thesupervision must be moderate. Loose supervision exists in name only, side effects(such as breeding of power rent-seeking corruption), and excessive regulation easilymake industry vitality, remain stagnant.This article also proposes to our country PE regulation of specific suggestions:improve the PE legal system, administrative supervision regulations on subject andobject, content. Hopefully it could provide some practical reference to our PEregulatory policy.