Research On Legal Issues Of Supervision Of Foreign Private Equity Funds

Foreign private equity funds entered China in the 1990 s,bringing advanced business models and mature management experience,Further improve the internationalization level of China's capital market.However,foreign-related properties based on foreign-funded PE and other complex factors,such as may affect the development of domestic enterprises in China,have an impact on the adjustment of China's industrial structure,and may even have hidden political purposes.Therefore,the negative impact of foreign PE on China's economy also needs our attention.At the same time,with the further deepening of China's reform and opening up and the development of economic globalization,any fluctuations in the international financial market may affect China's economic development and even threaten China's economic security.Therefore,the reasonable regulation of foreign-funded PE is a very necessary and important issue both in theory and in practice.Private equity funds have only entered China for more than 20 years.There are still some problems in investment operation that need to be solved urgently.The main manifestations are the imperfect supporting legal system,the inflexibility and lag of relevant regulations,and the alienation of organizational systems and operations caused by inadequate supervision..Moreover,it does not understand the impact of the entry of foreign-funded PE on the development of China's enterprises and the optimization of industrial structure.Therefore,how to improve China's legal supervision system for foreign-funded PE,learn from foreign advanced systems and mature experience,and make good use of foreign-funded PE as a "double-edged sword" to help the development of small and medium-sized enterprises is an important part of this paper.Through case study and comparison with foreign related systems,this paper finds out the problems existing in China's current system,and draws on the mature experience of foreign countries to make suggestions.Then focus on the operation mode and special contract of foreign PE,analyze the institutional functions and advantages of each model,and its alienation performance.For example,in a limited partnership,a limited liability company is a general partner,a general partner has a lac of fiduciary duty and a serious moral hazard,and the limited partner's “safe harbor” clause has unclear boundaries and narrow coverage.Combined with case analysis,this paper starts from the perspectives of legislation,judicature and academic circles,analyzes the alienation of this model in China,and puts forward countermeasures based on the experience of overseas.For example,the effectiveness of some special contracts commonly used by overseas private equity funds in investment is mainly based on the application of the universal gambling agreement.Two different types of cases are selected for analysis and the results of the courts are compared.Point out the problem and propose your own thinking.The innovation of this paper is to choose a relatively new way of writing.The general idea is to divide the article into three parts: the access,operation and exit of foreign PE.As three parallel sections,the paper discusses the foreign PE in these three aspects.The current regulatory policies,as well as the restrictions and existing problems,are based on the issues and are targeted to the three parts.