The Legal Issues Of China's Private Equity Fund Exit Mechanism

With the rapid development of Chinese private equity market,private equity funds as an financial investor become more and more popular financing tools,and enhance the vitality of capital markets,and promote the optimal allocation of financial capital,has important significance to promote economic development.Private equity funds depend on the norms and constraints of the external legal environment,there are many legal problems in the actual operation process.Therefore,this article uses the method of empirical analysis and comparative analysis to analyze the legal issues of China's private equity fund exit mode.On the basis of the model of private equity investment fund,the author gives some advice and suggestions on the development of private equity funds.This paper is based on the basic idea and main contents of topics identified by the use of "law and finance theory and method of economic analysis,legal regulation to study the problem of exit mechanism of private equity funds:from big to small according to the method of logical analysis,from the general to the special law of order in theory the first part of this paper puts forward the comprehensive private equity fund exit mechanism,and leads to China's main exit concept and the status in quo,namely the IPO company exit,exit through mergers and acquisitions,management equity repurchase exit bankruptcy liquidation exit in four different ways.The second part of this paper analyzes the current situation of the development of China's private equity fund exit,and the legal problems in the actual application process.In the listed companies listed on the exit,the high cost and risks,lock up period of long term,the listing from the imperfect information disclosure;mergers and acquisitions exit,China's relevant laws and transactions of property rights and property rights trading places is not perfect,the anti-monopoly review of mergers and acquisitions,strict tax problems;in the repurchase exit,the scope and quantity of equity have a repurchase restriction,is not conducive to private equity investment fund exit successfully;in liquidation,the company filed for bankruptcy requirements lack of problems such as high,narrow scope of application system in the bankruptcy law,liquidation preference.The third part on the basis of the concept,introduced the law from the foreign private equity investment fund,including the common law countries and civil law countries,explore the background under different legal systems,private equity investment funds on different out of the relevant provisions.The fourth part is the focus of the article,this paper proposed the legal exit mechanism of private equity funds,focus on the development status of China's financial market,the main emphasis on the improvement of relevant laws and regulations,broaden the market standard,the establishment of a multi-level capital market system and other means.Private equity funds involve a wide range of laws,there are different research areas of the corresponding legal research.In this paper,private equity funds are legal problems as the object of study,comprehensive and systematic thinking based on these problems,and try to answer these questions,in order to better promote the reform of the judicial practice and legal research China private market.