Basic Risk Management Of Private Equity Financing Of Smes In China In The New Era

The report of the 19 th National Congress of the Communist Party of China clearly declared that China officially entered a new era of socialism with Chinese characteristics,and encouraged many new major discussions on encouraging the development of the private economy,pointing out the direction for the sustained and healthy development of China's private economy,marking the private economy of China.Usher in new historical opportunities and enter a new stage of development.At the same time,the report for the first time proposed to strengthen innovation support for small and medium-sized enterprises and deepen supplyside structural reform.Came amid increasing deepening supply side structural reform and a trade war with China's new dual background,under the condition of the market is weak for enterprise's innovation ability and industrial structure put forward higher request,many small and medium-sized enterprises to rely on their own innovation ability,flexible mechanism,market keen edge,still shows strong vitality and vigor,especially for small and medium enterprises which provides a good opportunity for the development of science and technology innovation enterprise.There are a large number of small and medium-sized enterprises in China,accounting for about 99% of the total number of enterprises.They are important forces to promote China's sustained economic growth,expand population employment,promote scientific and technological innovation,and optimize the industrial structure.However,in the process of the development of small and medium-sized enterprises,the important factor that has been restricting the development and growth of small and medium-sized enterprises is the problem of financing difficulty.As a new financing mode,private placement has become a hot spot of financing for small and medium-sized enterprises in China due to its low financing cost and flexible operation.In the rapid development of private equity financing at the same time,some companies went bankrupt because of the introduction of private equity fund or by rivals,such as cool,kung fu,small blue bike,so you need to note which hidden risks,especially for the professional ability and governance structure is not sound for the small and medium-sized enterprises,to further improve the risk prevention consciousness.On the basis of relevant research literature at home and abroad,this paper introduces the present situation of private equity financing of small and medium-sized enterprises in our country,to private equity financing for small and medium-sized enterprises,the main problems and the cause of private equity financing risk types,combining the domestic small and mediumsized enterprise HJ company introduces YK institution for private equity financing practice of failure cases,summarized analysis out some small businesses in private equity financing and the problems of risk management,and pointed private financing conception,negotiation,signing,operating,and exit at various stages puts forward some countermeasures or Suggestions based on risk management and countermeasures.Finally,the paper summarizes the whole paper and looks forward to the future research direction.