A Legal Research On The Regulation Of Private Equity Fund In China

Private equity fund, a product of financial innovation, gradually develops in China.Whereas, it is evident that Chinese private equity fund market is large but not strong:behaviors of market participants are non-rational; industrial standards are missing; andpotential risks are increasingly accumulated. Chinese private equity fund is still staying atinitial developing period and Systematic and thorough regulation system of private equityfund has not established yet. All of above factors are to be the root of the problems. In thiscontext, there are great practical significances to do some researches on the regulation ofPrivate equity fund and the construction of Chinese regulation rules to Private equity fund.Excepting introduction and brief summary, the main body of this paper has four parts:Part1Outlining of private equity fund of China. The connotation of private equity fundwill be defined foremost. On this basis, developing status and existing problems are to beobserved and it is found that the root of problems in private equity fund market mainly restwith the rule deficiency of government regulation and market self-regulation, whichhighlights the necessity of regulation.Part2Theoretical basis and comparative study of private equity fund regulation. Thenecessity of regulation is analyzed and the question of whether private equity fund should beregulated is explained first. In the second place, it is to analyze regulation principles, and thenmove forward a step to probe into the regulation principle of overseas developed countries.Through comparing and concluding overseas regulation mode, the way to regulate privateequity fund is found.Part3Regulation system of Chinese private equity fund. Firstly, all relevant rules andpolicies of private equity fund in China are to be combed. Then, it is to analyze the existingproblems of private equity fund regulation system from the perspective of governmentregulation and industrial self-regulation.Part4The establishment and perfection of Chinese private equity fund regulation. Onaccount of the reflection for overseas regulation mode of private equity fund, the nature ofprivate placement and the market failure and government failure under the perspective ofeconomic law, Indicating that coordinative&interactive regulation system of private equityfund should be found in China, Namely, a system of legally binding government regulation,combined with an effective industrail self-regualtion. After that, the suggestions is put forward from the aspects of regulation body’s permission allocation and regulation measures,etc. Finally, taking into consideration of the positioning of private equity fund industryassociation, the ensuring of self-discipline regulation and the formulating of behavioral rulesfor private equity fund and so on, some useful advice to reinforce industrial self-regulation areto be raised.