(1) It is necessary to actively and steadily develop private equity funds to adapt to the opening up of China's financial market and improve its competitive strength.
With the completion of the understanding, the opening of China fund market is not far off. According to the agreement, foreign funds can enter the China market within five years. It is conceivable that when a lot of foreign funds enter China, there is still room for private equity funds in China, which will be a great loss. Therefore, with the revision and promulgation of the Investment Fund Law, private equity funds will establish a clear legal status and enter the golden age of their own development. The development of private equity funds is conducive to expanding the financial market, improving the investment concept, and providing a new way for the commercial operation of social funds and the reform of state-owned enterprises; It will effectively promote the upgrading of China's securities industry and promote the development of the securities market.
(2) The development of private equity fund will promote the healthy development of China fund industry.
On the one hand, although there are great differences between private equity funds and Public Offering of Fund, they also promote each other in essence. Due to the strong complementarity between private equity fund and Public Offering of Fund, its launch will not only increase the variety of funds in the securities market, but also broaden the business scope of fund management companies. On the other hand, as private equity funds are brought into the track of standardized and legal development, a number of qualified investment consulting companies will join the ranks of fund managers, break the monopoly of the fund market with their market-oriented management and operation mechanisms, introduce competition mechanisms, reduce transaction costs and promote financial innovation, thus creating a fair, just and open competitive environment for the development of the fund market.
(3) With the development of openness, legalization and standardization of private equity funds, it is conducive to strengthening financial supervision and avoiding big risks.
Private equity funds have specific high risks and high returns, so that once the financial risks based on financial leverage are exposed and broke out, it will have a serious impact on social economy. Judging from the current development momentum and scale of private equity funds at home and abroad, private equity funds existing in the "underground" have already reached a considerable scale. However, due to the unclear legal status, information disclosure and financial supervision are out of the question, which is not conducive to fair competition in the fund market and also leads to the loss of control of risks by the regulatory authorities.