On The System Of Qualified Investors In Private Equity Funds In China

Private equity funds are increasingly mature in our country and have gradually become an important part of Chinese financial market.As private equity funds appeared lately in China,there is no uniform definition of the concept of private equity funds in Chinese theory and practice circles.There is a phenomenon that the private equity funds are confused with other funds.In order to promote the development of such funds,it is necessary to define the concept of the funds in a unified way.The characteristics of the private equity field determine that it has great risks.At present,China's implementation of the post-mortem filing registration system for private equity funds mainly relies on industry self-discipline management.Under this circumstance,in order to prevent greater risks in the development of the private equity sector,I believe that setting a threshold for investors is the most effective way.Through the establishment of sound investor rules,ensure that investors participating in the field have sufficient self-protection capabilities and risk tolerance capabilities,and avoid the possibility of major risks in the field from the source.To promote the development of private equity funds,it is inseparable from the perfect investor rules.Not only is there a bias in the understanding of private equity funds,but there are also many problems in China's investor rules.It points out that there is a conflict of applicable law in the investment system of qualified investor in our country,the regulatory body is not clear and the definition of qualified investors is too broad,the restrictions on the number of investors is relatively simple,resulting in that the eligible investors are often confused when applying the law,to a certain extent,hindering our private equity Fund's development.In order to effectively solve the current problems in the system of qualified investors in our country,we suggest that you can proceed from the following aspects:.First,we should clarify the relationship between "registration exemption" and"prudential regulation".Second,it clarifies the principle of qualified investor of private equity fund in our country,which should be based on protecting the interests of investors,taking into account the financing convenience,should adhere to the principle of prudence and clarity and continuity in the legislation of qualified investors.Thirdly,define the definition of qualified investors of private equity funds in our country,the main objective is to classify eligible investors and to differentiate between different population limits and introduce the rules of "merger calculation"and "penetration calculation" when calculating the number of people,and at the same time ensure that investors have real economic strength and adequate risk screening ability.To sum up,we can see that the healthy development of private equity funds can not be separated from a sound system of qualified investors.The system of qualified investors is the core system of private equity funds.The perfect system of qualified investors is not only the inherent requirement of protecting the interests of investors and diversifying investment risks,but also the precondition of promoting the healthy development of private equity funds.