A Comprehensive Study On The Exit Mechanism Of The Private Equity Investment In China

Compared with the developed countries, China private equity market was just beginning. A great amount of wealth which was accumulated during the last three decades in saving and deposit accounts hanker for more profitable investment vehicles. High-tech industries have been supported strongly at the present stage in China. Besides the traditional supporting approaches such as bank loan and tax relief, private equity investment would become an indispensable part in boosting emerging high-tech industries. Furthermore, these funds could do some contributions to convert science and technology researches into actual capacity. So an analysis of the development trend and exit approaches of private equity industry is necessary.This essay would compare the historical trend and status quo, and analyze focused on the exit approach of private equity investment in China. Meanwhile, feasible solutions were supplied to the universal problems and obstacles involved. Firstly, this essay would analyze the background and value of private equity industry, and illustrate the importance of private equity fund. Then some fundamental theories, classifications and the processes of investment were summarized. After that, based on the history of private equity market in China, the financing structures, investment scales, investment stages, investment industries, investment types, investment areas and exit approaches are carefully analyzed. Then, with some practical cases, a deep research of both the development and the exiting mechanism of private equity fund in China would be taken. Finally, after discussing the development problems of China’s private equity field, some advices were given to help to nurture this market.