Fostering Mechanism Of The Private Equity Investment Funds In Jilin Province

Private Equity as a kind of capital power has become an important component of the capital market in developed countries. In China which is in the transition of economic development, many enterprises are eager to gain more capital to be stronger and more developed through private equity. As the statistics shows that the total economic scale in Jilin Province has reached a new historic level in 2009. As the initial accounting, the province's GDP achieved 720.318 billion yuan which is 77.912 billion yuan more than that of 2008. Of the GDP, the added value of primary industry is 98.05 billion yuan, an increase of 2.8%; the secondary industry realized the added value of 349.196 billion yuan, an increase of 16.7%; and the added value for the tertiary industry is 273.072 billion yuan, increased by 12.7%. Industries in the whole province developed rapidly in 2009, and the economic benefits improved significantly. Enterprises above designated size in the whole province have gained the added value of 292.665 billion yuan, an increase of 16.8%, according to the comparable prices, which is higher than the current national average level by 5.8%. Of which the light industry and heavy industry each yielded the added value of 80.939 billion yuan, an increase of 22.9% and 211.726 billion yuan, an increase of 14.7%. Jilin Province has achieved positive results by making use of extraterritorial capital in 2009. The actual use of foreign capital was up to 3.567 billion U.S. Dollars, increasing 18.6%. Foreign direct investment has grown 14.7% by 1.14 billion U.S. Dollars. The annual actual introduction of provincial investment reached 165.601 billion yuan, increasing 35.5%.In addition to the required financial support, the rapid economic growth also needs to nurture private equity funds to activate the economy in late-developing regions and integrate local resources. Therefore, this dissertation focus on how to foster and develop the private equity fund to support sound and fast economic development of Jilin Province.Under such circumstances, this dissertation provides detailed summarization on the concept, features, nature, organizational form, operational mechanism and fundamental theory of private equity investment fund through overall review on both domestic and foreign researches. After a systematic analysis on economic environment, legislation policy, investment and human resource situation of Jilin province, advantages and problems in establishing private equity investment fund in Jilin province are concluded in this paper. Moreover, mechanisms of cultivating, support, service and regulation on fostering private equity investment fund in Jlin province were finally established by studying private equity investment fund development in Europe and Binhai New Zone, Tianjin, China, so as to give policy proposal to the government, market and enterprise.Constructing the cultivating mechanism of private equity funds in Jilin Province can breed the native private equity funds and improve the investment and financing mechanisms in Jilin, it can also resolve the problems of the current excess liquidity of the whole society and corporate financial difficulty. Thus it will provide diversified comprehensive financial services with sufficiency, efficiency and high quality for the old industrial base revitalization..