Research On The External Supervision Of Private Equity Funds Participating In Marketized Debt-Equity Swaps

With the increase in downward pressure on the global economy,the overall economic development in the country has slowed down,and the non-performing loan ratios of financial institutions such as banks have continued to climb.The high financing costs and distortions in the supply structure have led to a continuous decline in profit margins and the conversion of stocks through market-based debts.It is particularly important to reduce corporate leverage to stabilize the domestic financial system.While the private equity funds that have already landed participate in the debt-equity-to-equity transaction structure,the target enterprises are mostly large-scale state-owned enterprises.All of them are carried out on a case-by-case basis.They are not conventionalized and marketized,and they still exist in the legal supervision system.Many problems: First,there is a certain lack and ambiguity in the regulatory level of private equity funds;second,private equity funds have unclear regulatory boundaries and unclear regulatory bodies in participating in debt-to-equity swaps;third,the supervision of private equity funds as a whole presents a situation of public float.In view of this,the author seeks to explore the legal theory basis of the external supervision of private equity funds,explain the external regulatory logic of private equity funds from the necessity and limitations of private law autonomy,and the incompleteness of the law,and based on existing regulatory policies.And how the provisions in the specific application process should be resolved,and how improvements should be made,and a number of targeted institutional recommendations should be made with a view to adopting effective rulemaking,maximizing marketization,and making private placements through market operations.The fund's participation in debt-to-equity swaps can be routinely used to reduce transaction costs.The content and structure of the full text follows the logical system of general theory and sub-discussion.The specific written ideas are as follows:Firstly,combining the status quo of private equity funds participating in marketoriented debt-to-equity swaps,it analyzes why market-oriented debt-to-equity swaps do not have large-scale operational reasons.From the perspective of phenomena,it clarifies the nature of the phenomenon,clarifies the reasons behind the system,mechanism factors,and existing regulations.The logical public opinion factor explores what kind of external supervisory logic should be in the current market context.Secondly,by exploring the legal theory foundation of external supervision of private equity funds,the authors define the rights of private equity funds to issue access,and discuss the balance between private rights and public rights and the legal implications behind them.At the same time,the general policy of private equity funds is analyzed.Theory,review the scientific and rationality of China's private equity fund policy supervision.After analyzing and studying the basic theories of private equity fund supervision,the author will conduct targeted research on two specific legal systems of private equity funds participating in debt-to-equity swaps,that is,the judgment of the attributes of investment in private equity funds,the definition of investment,and private equity funds.The following issues were considered in the development of the entry threshold for private equity fund managers in debt-to-equity swaps: First,the non-standard debt investment properties of private equity funds involved in debt-to-equity swaps,and provisional regulations for the management of private equity funds(Discussion Draft),discusses the applicability of the definition of investment targets,analyzes the application of existing policies,and analyzes the third issue of securities investment fund law through the application and understanding of the entry criteria for special target managers.Article 11 and Article 6 of the “Provisional Regulations for Private Equity Funds(Discussion Draft)” analyze the manager's access threshold and proposes an understanding of the applicable requirements for the professional management of fund managers.Finally,through reflection and investigation on the value target of China's current private equity fund supervision policy,combined with the basic logic of external fund management of private equity funds,the principles of proper supervision and differential supervision that should be followed in the supervision of private equity funds are defined,and the dual supervision model of private equity funds is established.And to further improve the supply of legal systems for private equity funds,through the constant standardization and refinement of the legal norms,to further establish a reasonable external supervision,clear the supervision of investment targets and the fund industry associations for selfregulatory requirements.