Research On Investment Fund Govertnance Mechanism Of Ownership Of Central Enterprises

As an important part of the financial sector of a country, private equity can not only boost the country’s technological innovation and emerging industries but also promote the development of the real economy and thus enhance its financial strength and comprehensive national power. Central SOEs are large scale state-owned enterprise in important industries and key areas that are related to national security and the lifeline of the national economy. They are the backbones of our national economy and the pillars for major technological innovation. Central SOEs private equity, which can help central SOEs to adapt to the needs of the developing market economy in new times, is a vital tool and method to realize the revitalization and development of pillar industries and key areas and thus enhance the comprehensive national power. With their strong fund-raising ability, advanced industrial technology, rich experience capital operation, and multiple high quality projects, central SOEs can initiate and operate private equities. Relying on the industry background of central SOEs, the private equities will carry out equity investment on the high-tech industries and major projects that are in close relation to central SOEs to help them realize and promote their responsibility in national strategy.In order to promote the development of private equity in central SOEs, this paper focuses on the research and exploration of the external environment such as government policies, economic conditions, and so on, and the internal governance mechanism of the equity. After the comparative study of the development status and legal regulations of foreign private equity, we clarifies the points that favorable operating environment is the basis for the development of central SOEs private equity and effective governance mechanism is the guarantee for the expansion of central SOEs private equity. Favorable operating environment can promote the rapid development of the fund, while effective governance mechanism can straighten out the relationship among investor, fund manager, central SOEs, and the enterprises invested and thus form an effective management system to ensure that fund managers will make scientific and rational decision-making in management and a sound incentive and constraint mechanism on fund managers as well.Plenty of useful information and data has been obtained from the study on central SOEs established and planned to establish private equity. Here we’d like to express our gratitude to the leaders of related central SOEs and Fund Management Companies.