Study On The Motivation And Risk Of Private Equity Investment Financing From Chinese Insurance Fund

Since the reform and opening up,China's society and economy got leapfrog development and achieved remarkable success with the rapid development of all industries,which brought China's economic up to the second in the world and improved the quality of Chinese people's life.During this process,the financial industry also went through a great leapfrog development and has become the indispensible part of Chinese economy.With its increasing improvement,it also has become the significant source and channel of monetary circulation in real economy and one of the pillars of Chinese economy.As the system of Chinese market-based economy improved and more attention paid on the risks of markets,the insurance industry,important parts of the financial industry,grows stronger and stronger.Since the domestic financial market develop constantly with more strict supervision and higher efficiency,insurance fund provides financial support for companies through private equity investment.Firstly,this thesis analyses and summarizes the related concepts and current research results of PE and then summarizes from the aspects of laws and regulations,agent,risk factors,equity investment evaluation and avoidance mechanism of PE to provide theoretical reference basis for the study on current situation,agent and risks of PE.Secondly,it introduces the current operation situation of insurance fund from three aspects of asset allocation,income level and the level of profit and management mode,followed by the development process and current situation of China's insurance fund.Compared with the development model of international insurance fund,it put forwards the major problems and future trend of China's equity investment.This thesis also studies the effect of equity investment of insurance funds from the angle of stakeholders(investors and investee companies).Based on the category of internal,external and synergy effect,it analyzes the agent of equity investment of insurance funds according to the structure of “Putting forward the theoretical framework,analyzing the influence path,Providing demonstration and cases”.The conclusion is that insurance companies have two identities of financial investment institution and corporate investment institutions.It could realize the extra profits and spread risks as well as create synergistic effect through cooperation with investee companies.Besides,PE is beneficial to increase management and financing structure of investee companies.Therefore,PE could realize the double-win between investors and investees and economic and social profits to provide theoretical support for insurance agencies.Fourthly,it recognizes and classifies internal and external risks faced by PE and builds the system of venture investment.Using the fuzzy comprehensive evaluation method,it also analyzes quantitatively the venture of PE.In a conclusion,combining with the PE investment risk theory and enterprise internal control theory,this paper builds the risk control mechanism of PE from two layers of organization structure and company and presents specific measures for venture control.For the moral hazard after investment,it gives advices on some investment tools,product structure design and after-invest management to provide references for insurance companies.