Private Equity Investment Fund In Our Country's Industry Choice Behavior Research

Private equity investment funds in China developed for nearly30years. From the foreign private equity can do anything they wanted in the market, to Chinese private equity investment funds developed, and then to RMB funds occupied most of financial markets, private equity investment fund industry in China can be described with China economy growing and develop together. Nearly30years of investment experience in the Chinese market, whether it is a foreign private equity investment funds, or domestic private equity funds, have formed a number of unique characteristics in the Chinese market. In the field of choice behavior in the industry, different with the Western developed countries’private equity funds based on buyout funds and the investment strategy of investing primarily in high-tech industries, Chinese private equity investment funds prefer growth funds investing in traditional sectors. In addition, there is a lot of different phenomenon from the foreign private equity investment market; it is worth our attention and exploration. The investment behavior of private equity fund investment is the decision under conditions of uncertainty, so it is practically and theoretically valuable to the combine of behavioral finance theory to study the choice industry behavior of China’s private equity.In this paper, it is based on the generalized private equity investment fund and combined with behavioral finance theory to study the industry choice behavior of China’s private equity funds. Through the exploratory research, it is revealed the causes of the investment choice made under conditions of uncertainty, as well as their behavior on the development of the industry. Only clearing the theory behind industry choice of our country’s private equity investment funds can develop reasonable policies and regulations, take advantage of the characteristics of finding and creating value, promote the adjustment of economic structure. The first Chapter describes the basic content of private equity funds as well as the development and characteristics at home and abroad. Chapter II lists the positive role played by the private equity investment fund to China’s economic development. Chapter III relates to overview of the domestic and international private equity investment research literature and foreign behavioral finance literature. Chapter Ⅳ summarizes the content and process of private equity fund when making industry research. Chapter Ⅴ makes analysis and interpretation of China’s private equity investment industry choices through the use of behavioral finance theory. Chapter Ⅵ summarizes the lack of development of China’s private equity fund industry and puts forward opinions and suggestions.