Research On How To Develop Chinese Private Equity Funds

Many international private equity firms have come to china to make a profit on Chinese market, since 2004. And then an upsurge in private equity funds comes to us. Most people believe that private equity will be an important and positive part of the Chinese economy and, more importantly, play a role in driving its growth. The purpose of writing this article is to find out that how to set up and develop Chinese private equity funds in available condition by various research methods.The problems facing Chinese private equity funds are listed in this article. The suggestions such as improving the environment, allowing private capital to be the main investor to private equity funds instead of government, forming professional manager market and encouraging professional and support services are provided in the article. About the question of whether the development of private equity funds is able to improve medium-sized and small enterprises'problem of financing, the article has given out the conclusion that is unlike the general viewpoint: since most private equity funds in China concentrate on the reform of state-owned enterprises, pre-IPO as well as the firms who occupy high market share, for most medium-sized and small enterprises, the problem of financing will still exist in a long period.Studying this topic may help accelerate the development of Chinese private equity funds. Further more, the financing system can be improved, the current problem of surplus liquidity may be solved and regulating and supervising private equity funds will be much easier in China.