Preliminary Study On Private Equity Fund Investmenting Mineral Exploration In China

With the increased economic openness and capital market development, China has become a major global private equity funds target market, while domestic private equity funds are also showing great potential for development. In recent years ,mining continues to climb has also led to various financial institutions active in.In the process of foreign private equity funds and domestic private capital's looking for investment projects,they have started to intervene in mining areas, involved in mineral exploration investment . In foreign countries ,practice has proved that private equity funds as an innovative financial instruments to promoting capital market development, improving the corporate governance structure, promoting SME development and high-tech development will have positive effects. Currently, private equity funds as new things in China is not yet mature,it is importent that how to guide the combination with mineral exploration and play an active role in practical life.Any investment is risky, investment in mineral exploration more difficult than other kind of investments, more technical, more at risk. To private equity fund investors, fumulating scientific and rational decision-making, controling risk effectively, and avoiding economic losses from risk is the central issue that relate to the success or failure of mineral exploration investment. In addition, private equity funds in China as new thing have more shorter development history.In practice, it will meet the blank area of relevant laws, regulations and policy. On the one hand, the Government should encourage and support the development of private equity funds ,continuing to strengthen the effective supervision. the other hand private equity investment agencies also should self-discipline strictly.Private equity fund investing in mineral exploration in our country is the centre of the article. First the main research results of domestic and foreign scholars on private equity funds was introduced. Followed, there is a brief summary on Private equity funds include the development state in china and foreign;characteristics,classification and operation on private equity funds. Once again, the paper analysised the feasibility on private equity fund investment mineral exploration in our country, along with relevant cases. Then the paper conducted a preliminary study on investment decisions of the private equity fund. Investment environment evaluation and economic evaluation as the focus of the study are anlysised by AHP and cost-profit and so on. Finally according to the problems in mineral exploration, put forward specific recommendations.