Problems And Remedies On Financial Operations Of Chinese Venture Captial Investment

With the reinforcement of global economic integration,the arrival of the world's past-industrialized era and the rapid development of Chinese economy,the content of industry contained in economic total growth increasingly demands the fundamental change of growth patterns. This should be based on the foundation of new financial mechanism and extremely be depended on the tremendous development of promoting modern financial service industry. Thus,the accumlated great amount of money could be an important pusher of a new economic growth. As a new financial institutional arrangement,venture capital investment plays an important role in promoting economic growth. So it is called"an engine for economic growth". Successful experiences of foreign countries such as America have proved that venture capital investment plays essentials roles in economic's sustainable development,the upgrading of an industrial structure,the upgrade of products,the promotion of the commercialization of research findings,etc. Currently,with the maintaining of rapid growth of GDP and foreign exchange reserve's exceeding of a trillion US dollar,China has gradually get rid of the restriction of serious fund shortage. Venture capital investment has become a new channel of financing and investing in China. It produces a positive effect on speeding up the process of capital socialization in China,forming of new investment channels, expanding demands for investment and promotion of economic's continual and steady growth.Based on cost-benefit theory,principal-agent theory,capital structure theory, transaction cost theory and human capital theory,this paper analyzed the financial operation of venture capital,investigated the problems and causes of the financial investment. This paper introduced three venture capital models: stock market as the center of the U.S. development model,bank-centered Japanese-German development model,government as the center of the Israeli development model and analyzed the inspiration to China venture capital. Judging from China's actual conditions this paper put forward some methods to broaden the financing channels,reform the education system,train venture capitalists,strengthen and improve the venture capital enterprise management,open up a wide range of exit channels,and gradually transit to the pattern of the government investment as the guidance,private capital as the main body,foreign investment for the support.