Research On The Related Legal Issues Of Private Equity Fund In China

As an "important product" of modern finance,the practice of China's private equity funds has faced an embarrassing situation since its development.In recent years,with the rapid growth of China's domestic private equity funds,more and more problems have emerged.In fact,contrary to the rapid development of China's private equity fund market,China's current legal regulations on private equity funds are still in the formation phase,and they are mainly composed of laws and regulations such as regulations promulgated by local or different ministries.As a result of the lack of systematic legal guidelines,the investment and operating risks of China's private equity funds are generally high,which also limits the development of private equity funds in China to some extent.Therefore,as far as the legal issues existing in the process of the operation of China's private equity funds,it is necessary to carry out a certain discussion on them,so as to achieve the practical effect of enriching the theory and promoting the practice.This article first analyzes the concept,characteristics and organization of private equity funds to clarify the legal relationship between the parties.At the same time,on the basis of the operation of China's limited partnership private equity funds,the issues such as imperfect legal norms,inconsistent judicial rulings,imperfect supervision mechanisms,and unsuccessful exit channels have been summarized.On this basis,in conjunction with the above issues,the private equity fund market and relevant legal systems in the United States,the United Kingdom,Japan,and other countries are inspected in a targeted manner.Based on their experience in governance,legal considerations were given to the institutional improvement of China's private equity funds.Firstly,by formulating the "Investment Fund Law",it can establish the legal status of China's private equity funds,clarify the qualifications of all parties,and establish a comprehensive system of fund managers' rights and obligations.Secondly,through the formulation of contract guidelines,the contents of related agreements are regulated,and the sharing of rights and responsibilities between parties is clarified.Thirdly,through improving the system of fund custodians,strengthening the internal governance of private equity funds,establishing a supervision and management system combining party autonomy,industry self-discipline,and government supervision.Fourthly,eliminating the legal obstacles in the exit process by improving the exit channels of Chinese private equity funds.