Study On Qualified Institutional Investors Of Private Equity Funds

Private equity is an investment in the financial markets is currently widely used,and quickly developed into a mainstay of the Chinese financial market and industryinvestment. Private equity investment in our country is still in early stages ofdevelopment, there are still many issues that need to solve, this is because of the wayfor this new investment did not establish the necessary legal system, and the Fundinherent high risk factors such as. How to make private equity funds can be suitablefor China’s economic environment, to ensure the interests of investors, reasonableavoid investment risks, and to enact relevant laws to regulate the normal operation ofthe fund, which is the real problem we face.Studies qualified investors in private equity funds, to improve the protection of partqualified investors more elaborate, but there are still two issues outstanding issues.Throughout the first provisions of the existing law, the corresponding legislation andsupervision departments have not yet introduced the relevant laws and regulations toachieve effective regulation of private funds raised for the object nor the formation ofstandardized criteria. Again, a sound system for investors in China has not yet formed,so for legitimate funds and illegal fund can not be effectively judgment, the legitimateinterests of investors can not be guaranteed. While the risk of rapid development ofprivate equity investment fund, and the absence of a sound regulatory framework andeffective supervision system, just entering the investment fund at the beginning of themarket, there has been out of control situation, coupled with the Fund’s informationcan not be disclosed publicly, face sudden increase, the influx of non-eligibility oncethe main cause investment mistakes, will cause great fluctuations in the stock market.Therefore, to explore the field of private equity funds and qualified investorsmechanism is essential. Based on the analysis of the current situation and the existingprivate equity fund of qualified investors in both modes, reference existing modelsdeveloped for private equity funds in the country’s well-developed to give someadvice.