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Private equity funds are funds raised by private individuals or directly from specific groups. The corresponding Public Offering of Fund is Public Offering of Fund. People usually say that funds are mainly mutual funds, that is, securities investment funds.
Private equity funds in a broad sense include private equity funds in addition to securities investment funds. In China's financial market, "private fund" or "underground fund" is usually a collective investment that is privately raised by specific investors, as opposed to the securities investment fund that is supervised by the competent department of China government and publicly issues beneficiary certificates to unspecified investors. There are basically two ways, one is a contractual collective investment fund based on signing the entrusted investment contract, and the other is a corporate collective investment fund based on * * * contributing shares to establish a joint-stock company.
Similar to the development of private equity investment in the United States, the exploration and development of private equity investment in China also started from venture capital, and the attempt of venture capital in China can be traced back to the 1980s. 1985 The Decision on Scientific and Technological Reform issued by the Central Committee mentioned the issue of supporting venture capital, and then the State Science and Technology Commission and the Ministry of Finance and other departments set up the first venture capital institution in China-China New Technology Venture Capital Company (Zhongchuang Company). After 1990s, a large number of overseas private equity investment funds began to enter China, which set off an upsurge of private equity investment in China, an emerging economy.
The first investment wave appeared in 1992 after the reform and opening up. At present, the investment targets are mainly state-owned enterprises, and most overseas investment funds cooperate with domestic ministries, such as North Industries and Jialing. However, it is difficult for investment institutions to find good projects because the system is not straightened out and administrative intervention is serious. At that time, there were few overseas listings, and they could not be fully circulated in China. After private equity investment, there was no way out, which led to the failure of investment funds when they first entered China. Most of these funds were withdrawn or dissolved before 1997.