The Study On The Private Equity Investment Of The Securities Corporation In China

Private equity investment, is an important business of securities corporation, they use their own capital to invest the private equity. PE investment of securities corporation is also a hot spot of CSRC (China Securities Regulatory Commission). Business tests have been conducting at selected securities corporation from 2007. Nowadays, there are 29 securities companies have got a test license and the whole capital scale of these companies reach to 10 billion RMB.After three years exploration and practice, PE business of Securities Corporation has gradually clicked into place. But in fact, PE business in western countries is well ahead our country. Form the late 1990s, some famous international investment banks have made a lot of private equity investment in China, such as Industrial and Commercial Bank of China, Ping An Insurance, China MengNiu Dairy Company, etc. After these high quality enterprises in China listing overseas, domestic investors cannot share the investment profit of these companies, and meanwhile, China's market also lost many high quality domestic listed companies. So it's necessary to develop the PE business in China. Overall, China's PE business in securities company is starting late and the scale is small. So the management is not yet mature, and its direction of development is not quite clear.The article mostly uses the methods such as concept explanation, literature methodology, comparative analysis and theory relation practice law to analyze. In the writing process, the author has analyzed the annual reports and IPO herring prospectus of domestic and foreign investment banks, and has made a detailed industry policies interpretation. And the purpose is to understand the market environment and policy orientation of PE business in securities companies in China, and to find a mature business mode from all developed capital markets. Meanwhile, the author has applied Investment Theory and Industry Consolidation Theory to seek a change of the mode of operation in PE business, and to find a way of development of PE business in securities company in China.