Study On Building The Private Equity Funds System Of Chinese-style In The New Stage

In the post-crisis era, China is confronted with great opportunities in economic growth, and challenges as well. The global economy turns downward deeply due to the impact of the sub-prime mortgage crisis, while china's GDP growth rate was kept above 8% successfully. Meanwhile, problems and difficulties become more and more serious. For example, there both internal and external imbalance exists in Chinese economy. As unprecedented challenges and opportunities coming together in the new era, we must search for new engines to achieve balance and breakthroughs. As a promising star in the capital market, private equity funds (PE for simple) is considered to be one of the engines.What described above tells us it is important to make good use of PE to achieving smoothly economy transformation and promoting economy development. Therefore, building the PE system of Chinese-style in the new stage is important and urgent.For practicality and feasibility consideration, Title of this thesis was chosen to be "Study on building the PE system of Chinese-style in the new stage". This study closely focuses on the two endogenous variables-the Government and the Market, which are the core of a system. By using expanding two different modes in the loan market, "BMW" Hypothesis and Development Mode Analyzing Model, three key factors of the system, including the special characteristics of PE, "new stage", "Chinese-style", were fully considered and analyzed. Then four important points of the system were formed, as well as the detail arrangements, which are just what are expected.Firstly, theories analyzing of different development models and their success or failure illustrates that different countries may have different systems. China is one of the reforming economies, which are transiting from government-oriented economy to market-oriented economy, so we have a "Big Government" and a developing market. Thus, Government-enhanced model is confirmed to be the most important points of the system.Secondly, after concluding the international experiences and analyzing the special characteristics of PE industry, the second important point for the system was confirmed, that is building three main market-oriented mechanisms. Three kinds of mechanisms are broadly used in PE, which are Contracting Mechanisms, Interest-binding Mechanisms and Risk Control Mechanisms.Thirdly, using Finance Developing Model, economy indication of all the points is that the social cost is minimized if the value is established. As for that, minimizing the social cost of PE in china is the third important point of the system when PE's Chinese-style aim is established.In addition, on the basis of "BMW" Hypothesis, System flexibility and predictability is the forth key point of the system required, according to introspection of subprime mortgage crisis.Finally, there is a conclusion, which shows how the system can be built as well as what are the key points of this system and detail arrangements for it.