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Research On Preferred Share System In Private Equity Investment Of China

Posted on:2019-09-22Degree:MasterType:Thesis
Country:ChinaCandidate:J C ZhaoFull Text:PDF
GTID:2416330545453007Subject:Law
Abstract/Summary:PDF Full Text Request
Private equity investment originated in the United States and is widely used in the West,becoming a universal financing method.While the development of private equity investment in China is relatively late,but with the introduction of this investment method,because of its efficient and flexible operation of funds,it has gradually become an important part of China's market economy,adding vitality to the prosperity of China's capital market.Now that private equity investment is in an adaptive period in our country,there have been many problems.Private equity investment has the characteristics of high risk and high return,making it urgent to seek a corresponding system approach to avoid risks.The emergence of the preferred stock system has become the first choice for investors.The preferred share system can be well adapted to the private equity investment model.In 2013,the State Council issued the Guiding Opinions on Pilot Projects for Preferred Shares.In 2014,Management Approaches of Pilot Projects for Preferred Stocks was enacted by CSRC,so that preferred stocks are promoted and used in China in the way of pilot,and they show good development.situation.Although China's preferred shares system has legal support for relevant laws and department regulations,the system is not complete.Due to the lack of clarity in the law,the preferred shares system cannot fully realize its advantages.At the same time,the natural restriction of preferred shares on the management rights of target companies makes them disadvantaged compared to common shares.This paper first carries out theoretical research,analyzes the theoretical elements of private equity investment and the risks of its existence,and explores the causes of risks,in order to find out the way to avoid the emerging risks from the preferred shares system.Then,by studying the theory and the legal attributes of preferred shares system,so as to discover the practical feasibility of linking the preferred stock system and private equity investment,which can demonstrate the advantages of preferred stocks in avoiding risks as well.At the same time,the legal support of preferred stocks,domestic and foreign practice guidelines,and analysis of cases provide the basis for the operation of preferred stocks.Because the system of preferred shares is not perfect,this paper discusses the defects of China's preferred stock system and puts forward its own recommendations in relevant aspects,so as to optimize the system of preferred shares.This paper is divided into four chapters,each chapter briefly as follows:Chapter one:an overview of the form of investment of PE and preferred stocks system.This chapter lays a theoretical foundation for the detailed discussion of this article by analyzing the theoretical study and legal attributes of the two.Chapter Two:the necessity and feasibility of Introducing preference shares system in China's private equity investment.This chapter begins with the risks of private equity investment,by exploring the causes of the risks to find ways to apply preferred shares and effectively solves corresponding problems.The feasibility of the discussion is based on the legal support,practice guidelines and case analysis of the preferred shares system.Chapter Three:An Analysis of the Problem of Preference Shares in China's Private Equity Investment.This chapter finds its imperfect aspects based on the feasibility of the application of the preferred stock system.It is divided into the issue subjects and conditions,the legal issues concerning the existence of the right to preferential distribution of surplus assets,the application of the system,and the problem of inadequate protection measure,which is studied to propose appropriate countermeasures.Chapter Four:optimization of preference shares in private equity investment of China.For the above issues,first of all,we should always make clear regulations on the corresponding aspects at the legislative level.Secondly,we will discuss the perfection of the details of the preferred shares system one by one and propose complementary plans.
Keywords/Search Tags:private equity investment, preferred share system, risks, optimization
PDF Full Text Request
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