Research On Applying Private Equity Investment Funds To State-Owned Enterprises Mergers And Acquisitions

Private equity funds(PE)is admited by the capital market.With the development of international financial markets,PE is becoming more and more mature.PE can make the enterprise develop rapidly.Nowaday,Chinese economy is catching up with the international advanced level in recent years,PE in China has been widely attention and rapid development.State-owned economy is the pillar of the national economy of our country.The stated-owned enterprises(SOE)development is closely related with the benefits of the whole country.Applying PE to SOEs,can effectively promote the adjustment of industrial structure,standardize corporate governance,economies of scale,enhance the international competitiveness of enterprises.However,researchs about applying PE to the SOEs in China is still in its infancy.SOEs are prone to implement M&A by its own or traditional financing,in the face of the complex international competition,it is inevitable powerless.This paper will reseach on PE,and its function by combining the theoretical study and practical analysis,try to point out positive function of applying PE to SOEs.This paper analyzs the concept of PE,operation mode,features and development status.By discussing PE operation mode,the positive role in capital market and the rapid development in the Chinese market,revealing its inevitability get popular in the Chinese market.By analyzing the current situation of PE for an active role in economic development and SOE development,and the problems that the SOE encountered in M&A,this paper states the importance of using the PE in SOE.Next,this paper focuses on the PE's function in SOE mergers and acquisitions.Meanwhile,analyzes the chinese company Zoomlion overseas acquisitions Italian CIFA cases,pointing out the role of promoting PE for the acquisition of SOE.Finally,in order to make PE a long-term development in Chinese market,and better serve the SOE reform.This paper gives four ideas and proposals for PE,enterprise,investment policy and etc.