Study On The Problems And Countermeasures Of Private Equity Fund Development In China

With the development of China’s securities market, private equity investors havestarted to get attention, but the understandings of private equity funds are differentamong people. Foreign private equity funds are generally referred to as " private equityfund", but as the slow development and small scall of the private equity funds in China,so the private equity funds are generally refers to as " private security funds" thatinvests in the stock market. As to this situation, according to the basic understanding ofpeople in the past of private equity funds and connecting with the development ofChina’s securities market, the paper will show our unique private equity fund---openprivate equity fund. China ’s private fund scale is huge, but overall it seems still in anarea of gray under legal supervise, if we want to have a long-term and stabledevelopment, standardization is the only way. Open private equity fund is one of aspecification form, open private fund special has significance for the development ofChina ’s private equity fund market.Chinese open private equity fund started in2007, and has a rapid development ofprivate since then. In2010it expanded by three times of the scale in2009whicn reachedto160billion yuan scale. After reading a lot of literature I find mostly took the form offoreign private equity fund development as the standards to the development direction ofChina’s private placement. Thus arises the two problems, one of China’s private equityfund in the legal gray area,as the lack of existing publicly available data, we onlycan see the trend of the situation and a number of related products through a number ofsurvey sites, it is not convincing enough. The second is the direct reference to thedevelopment of foreign private equity funds for the analysis which is far from thesituation and development of China and it leads to the inaccurate analysis results.In this paper, the development of open private equity as a starting point, and try todo objective analysis through existing data of the development of China’s private equityfunds.Market is developping, demonstration of today may not be suitable of the trendsof tomorrow, but I hope t we can have a deeper understanding of open private equityfund, a deeper understanding of the financial markets of emerging products, and hope that through today research more people know the deeper meaning of open privateequity fund: services Investor service China ’s securities market, China’s economicconstruction services, we also hope open private equity fund can flourish in China.