On The Legal Effect And Risk Control Of The Valuation Adjustment Mechanism In The Private Equity Investment

In the process of maturing,the VAM faces multiple practical difficulties from the market,regulation and law application.The contradictions and conflicts and doubts begin to emerge.On the one hand,this dilemma stems from the existing urgent psychology of China's capital market and the special value preference of foreign investors;on the other hand,it also stems from the tolerance and lack of understanding of new things of existing legal system and legal norms.The research method of this study is to make a preliminary introduction to the overview of the VAM in the first,including clarifying its concept,explaining its causes and analyzing its characteristics.Secondly,the author comprehensively compares the concepts and theories in typical case trial and application in China,and analyzes their advantages and disadvantages.In the end,this author makes a comprehensive analysis of the legal nature and the existing legal risks of China's VAM,analyzes the existing disputes and deficiencies,and puts forward relevant suggestions for the deficiencies,in order to help better understand the gambling agreement.The article is divided into four parts.The first chapter describes the legal background of the VAM.Among them,the concept of the VAM is clarified,and the characteristics of the VAM are pointed out,that is,the subject is specific and clear,the subject is homogeneous,and the reciprocity of the VAM is indicated.The first part further pointed out the motivation of the VAM.The second chapter,based on the legal nature of the VAM,puts forward that the VAM is a Aleatory Contract with specific option features,and finally leads to reverse legal effect from the nature of the VAM.The third chapter introduces the risk of the VAM.Firstly,the inherent risks of the VAM are demonstrated,including the inherent risks of the subject itself,the risk of content rationality,and the risk of the compliance of the object.Secondly,it demonstrates the existing external risks,mainly including market environment risks and legal risks.The last chapter elaborates differentiates and demonstrates on how to perfect the risks existing in the development of China's VAM which based on the theories and argumentation of the previous chapters.Based on the typical cases of the failure and success of VAM,this paper theoretically and practically demonstrates the problems in the development process of China's VAM,from the private equity investors to the financing parties,from the government to the social intermediary organizations to play the role of risk prevention,in order to better realize the utilization and development of the VAM.