Supervision Of Private Equity Funds

Private Equity (PE) has been one of the most successful innovative achievements in the global financial industry since the20th century. The Private Equity Organization begins to enter the Chinese market in the turn of20th-21th. It is called venture capital investment or risk investment vividly. At present, the domestic and foreign financial scholars, economists and management experts that research PE are too numerous to mention. However, the rapid degree of practical development far exceeds its theory construction of academic research. Therefore, there are still lots of problems and domains that need to solve and research during the developing PE. This thesis aims to study PE in China intensively from the legal angle, explore sinicized PE in depth from relative policies, surveillance measure, self-discipline means, etc. What’s more, it attempts to make Chinese PE market develop reasonably and orderly, pay a better role as catalysts and promote our marketization actively in addition to economic prosperity. The ultimate aim is revitalizing the Chinese economy.Prospering PE is a two-sided sword in China. On the one hand, it adds some new flavor to our economic restructuring and financial systems. On the other hand, leaks of financial regulation have been revealed. The world economic crisis resulted from American subprime mortgage crisis in2008. People realize that PE is full of hazard besides fat profits. Supervisory laws for it have been made by the USA, European Union and other international organizations. Meanwhile, a plenty of PE is draw into China because of rapid economic development. Our development goal for promoting economic growth provides free development environment to it. Furthermore, the laws about PE are incomplete and there’s no unified self-regulatory organization. These offer conditions for Chinese PE, but make difficulty also.This thesis studies the international supervisory loopholes and laws by comparative method. Combing with our economic characteristic and analyzing supervisory defects, it summarizes that our PE condition is based on low level of marketization, non-uniform standard of supervision and opaque supervisory mechanisms, etc. The reasons of our PE defects reached according to further research.