Current Status Of European Private Equity And Suggestion On Development Of Chinese Market

With the development of Socialism Economics and worldwide capital market, pravite equity has become more and more important in both domestic and global capital and financial market. In Europe, private equity, after being introduced from the original USA market into this ancient piece of land, has gone through decades of years in its starting, propering, developing and maturing as well as forming its unique features.As the second biggest private equity market in the world, European market has its own features: boy-out and M&A leads market growth; investment falls short in early stage venture capital investment; fund ignores high-tech segment; return-rates keeps lower; imbalance shows significant effect. Above all, why European markets falls short in early stage and high-tech investment is the key question we need to understand. First of all, the cultural background turns risk-averse attitude into quite popular believeing in Europe; second, segmented governments of different countries in Europe make it impossible to enact effective regulation which could foster venture capital to go to high-tech segment. Next, lack of enterprenuership in Europe causes low number of high-quality target companies.At the end, this paper covers the current situation and status of Chinese private equity market briefly and concludes suggestions and advices of developing Chinese private equity market: first of all, because of the late development of Chinese market, we should have clear and objective view about this market as a whole; second, private equty has not yet got an legal statement in China which prohibits enacting regulations and laws related; third, corporate governance system is not well-established within China while forms much untransparent information and illegal transaction.