Analysis On The Supervision Of Private Equity Investment Funds In China

Private equity investment fund has become the largest source of financing other than the public offering of shares and bank loans in China.It plays an important role in China’s financial and capital markets.In recent years,China has strengthened industrial supervision and effectively standardized the development of the industry by improving regulatory regulations,identifying China Securities Regulatory Commission and its dispatched institutions as regulatory departments,clarifying regulatory principles,and implementing the registration and filing system of private fund managers and funds.However,as a new financial instrument,private equity investment fund was born late in China,and there are still many problems in its supervision.On the basis of drawing lessons from the supervision system of this industry in the United States and the United Kingdom,this paper puts forward some suggestions for improving the supervision system of this industry in China.In addition to the introduction and conclusion,the text of this paper is divided into three parts:The first part is the problems existing in the supervision of private equity investment funds in China.There are still many problems in the supervision of private equity investment funds in China,such as low level of laws and regulations,many drawback,repeated supervision by multiple departments,and imperfect self-regulatory mechanism of the industry.The existence of these problems directly affects the implementation of industrial supervision policies and the further improvement of the supervision system.The second part is the supervision system and reference of major private equity funds in the United States and the United Kingdom.This paper analyzes the major private equity fund regulatory systems in the United States and Britain from the aspects of major regulatory regulations,regulatory authorities and industry self-regulation.Based on the analysis of the American regulatory system,it is proposed that China can draw lessons from the American practice of "implementingthe hierarchical regulatory system,strengthening the government’s professional regulatory strength" and "improving the mandatory custody system of private equity funds".Based on the analysis of the British regulatory system,it is proposed that China can draw lessons from the British practice of "differentiated legislation according to the types of private equity funds" and "improving the market access regulatory system of government departments for private equity investment funds".The third part is for the first part of the proposed questions to improve the recommendations.In order to prevent regulatory arbitrage,China should improve the level of regulatory effectiveness of private equity investment funds and make up for deficiencies by revising existing regulations.In addition,China should further rectify the phenomenon of repeated supervision by different departments,and improve the self-regulatory mechanism in terms of the regulatory responsibilities of fund industry associations,the formulation and implementation of self-regulatory rules,and self-regulatory training.