| Since reform and opening-up in China, it just spends about 30 years to be a world leader in economy. The growth of people’s wealth and wealth accumulation are unprecedented, and the high-net-worth population is already on the top of the world. Although the economy and the quantity of enterprise is growing dramatically, private equity investment in China is still in the beginning of the stage and some problems exist somehow.The private equity investment is to invest money into unlisted private firms to own its equity. Financing difficulty and the enterprise management is the one of the core obstacles in the development of small and medium-sized enterprise. The large state-owned banks and trust companies are very cautious to approve the loan applications to those smaller private enterprise. In this kind of background, private equity investment brings money as well as management to these enterprise. Due to Chinese financing market is not mature, the private equity investment has been appeared many problems in the stage of development. The Chinese government has been issuing related policies to standardize the financial market, which helps private equity investment market to have a bright future.CreditEase is a typical example of transforming to engage in private equity investment. Becoming to a full-range investment management company from inclusive finance in the early stage of company development, which can be seen as the development process of financial investment in China. Private equity slowly emerge, and private equity can make a company rapidly develop and also let the investors take part in and gain profit in the free market, which attracts great attention to high-net-worth population. In my paper, it analyze the current situation and problem of China’s private equity investment market, and then I took CGC China Growth Fund I, L.P as an example to analyze the case. Finally, providing high-net-worth individuals proper advice of asset allocation on private equity investment. |
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