The Legal Dilemma of Private Equity Fund Financing in China and Its Response

DOI

10.2991/assehr.k.211209.181How to use a DOI?

Keywords

China private equity; legal dilemma; investor system; approach to dilemma; the status of private equity

Abstract

According to the survey, the human capital fund has not become the main fund source of China’s venture capital industry. The lack of RMB fund status will greatly affect the market share of domestic assets. But suppose there is a law regulating the financing of these funds and guiding them into the private equity fund market. In that case, it will greatly accelerate the development of equity investment funds in China. Therefore, the development of private equity funds is very important for China. At present, our country’s legal system is in short supply in the development of equity funds. It is mainly reflected in the defects of the investor system of China’s private equity companies, the single source of industry’s capital, the structure that needs to be optimized and so on. The immaturity of these legal systems is mainly attributed to China’s legal tradition - a policy first and law lag. In this long process, there have been problems such as insufficient supervision, lack of specific laws and regulations and vague legal provisions. Therefore, China should set up some new legal systems according to China’s national conditions and the legal systems of developed countries in the private equity fund market to eliminate the predicament caused by the immaturity of the current legal system. Furthermore, we should strictly supervise private equity funds, and protect investors and prevent systemic financial risks. Given that qualified investors are the cornerstone of the private equity market, establishing the qualified investors’ system is urgent. Among them, a qualified investor system and perfect supervision system should be set up firstly.

Copyright

© 2021 The Authors. Published by Atlantis Press International B.V.

Open Access

This is an open access article under the CC BY-NC license.

Download article (PDF)

TY  - CONF
AU  - Jinwei Chao
AU  - Yaqin Xu
PY  - 2021
DA  - 2021/12/15
TI  - The Legal Dilemma of Private Equity Fund Financing in China and Its Response
BT  - Proceedings of the 2021 3rd International Conference on Economic Management and Cultural Industry (ICEMCI 2021)
PB  - Atlantis Press
SP  - 1118
EP  - 1122
SN  - 2352-5428
UR  - https://doi.org/10.2991/assehr.k.211209.181
DO  - 10.2991/assehr.k.211209.181
ID  - Chao2021
ER  -