Private Equity Secondary Trading Platform Design Based On Regional Equity Exchange Market

Over the past decade,China's venture capital has been developing rapidly.The amount of private equity investment and the number of investment cases are increasing step by step.Accordingly,the demand for the exit of private equity investment is also growing.In pursuit of higher investment return,IPO has become the most popular way of withdrawal of private equity market in China.However,IPO is vulnerable to the influence of economic environment and government policies.And the listing threshold is too high to meet the exit needs of some small and medium-sized enterprises,which makes China's private equity withdrawal channels blocked,so it is imperative to develop other exit channels.Compared with the rapid development of private equity market,the private equity secondary market in China is still not mature.Although the private equity secondary market in China has already existed,now it's only a scattered market,which is mostly butted by intermediary agencies between both buyers and sellers.Unlike the mature private equity secondary market system in developed countries like Europe and the United States,China lacks an active platform to centralize the secondary transactions,and the transaction is inefficient.Based on the regional equity exchange,this paper puts forward some operational solutions towards the existing needs of the private equity field in China.Firstly,the regional equity exchange market has the function of providing financing services for small and medium-sized enterprises,and has the function of share transfer,it has reason and position to establish PE secondary trading platform.Based on this,we analyzes China's overall policy and market situation,and use Guangdong and Guangzhou Equity Exchange as an example to analyzes the feasibility of establishing the private equity secondary trading platform.It is concluded that the establishment of a regional platform is operable and popularized.And we suggest that a number of regional private equity secondary trading platforms should be developed after the market rule is found.Before that,we can select one or two as pilot project.Based on the characteristics of the regional equity exchange market,we design the PE secondary trading platform,including the registration system of the platform,the information disclosure system and the trading system,and put forward some suggestions for the transaction of the state-owned PE assets.In order to enrich the profit source of the platform,increase the audience of the platform,and to provide services to the PE market from multiple angles.We suggest to establish directional private equity secondary fund,a special fund to hold the invested project temporary for the private equity fund managers who have capital demand,and add merger and matching business on the basis of the platform.