Research On Application Of Private Equity Funds To Promote The Development Of Small And Medium-sized Enterprises In China

Originated in America in the 1940’s, after decades in the rapid development of the world, behind after the shares issued by a bank loan, private equity has become the third largest corporate financing channel. At present, private equity in China is booming. The process of the development of small and medium-sized enterprises, the financing difficult problem has been the bottleneck of restricting its development. Policies, laws and regulations of supporting the development of small and medium-sized enterprises in our country are not perfect enough; small and medium-sized enterprise credit guarantee mechanism is not sound, this have restricted the our country small and medium-sized enterprise financing ability. Fundamentally solving the problem of financing difficulties of small and medium-sized enterprises in our country at present, is not to reform and perfect the small and medium-sized enterprises in our country mainly bank loans of creditor’s rights financing, instead is to establish and improve the equity financing mainly, debt financing as the auxiliary pole of the small and medium-sized enterprise financing, should vigorously promote private equity financing. The purpose of this study is to solve the small and medium-sized enterprises in China how to make use of private equity investment funds to solve the problem of financing difficulties. This paper first expounds foreign PE industry development and advanced management experience, aiming at analysing the development of China’s PE is insufficient and defect, points out its development path. Finally, this article takes JD private equity financing as an example, analyses small and medium-sized enterprises how to PE financing combining theory and practice, puts forward the suggestions to promote the development of private equity fund in China.