Actively developing the private equity fund market has the following significance for China's economic development: \x0d\ First, the private equity fund market is the basis for building a sound multi-level capital market. In the past, we had a wrong understanding of the perfect multi-level capital market. We have always believed that establishing a multi-level capital market means developing a multi-level market in the exchange. Considering the excessive development of the public financing market, we set up the SME board in 2004 and will set up the Growth Enterprise Market in the future. Of course, the development of the floor market is an integral part of the capital market, but we can't ignore that private equity funds are the basis for improving capital, because public offering and private placement are two major ways of corporate equity financing. A perfect capital market includes not only multi-level public offering, but also the development of private equity market. \x0d\ Second, it is of special significance to the growth of small and medium-sized enterprises. For a long time, the shortage of funds has been the main bottleneck restricting the growth of small and medium-sized enterprises in China, mainly because it is much more difficult for private enterprises to obtain bank loans than state-owned enterprises. As far as direct financing is concerned, no matter whether it is issuing bonds or listing stocks, all kinds of resources are beneficial to large enterprises rather than small and medium-sized enterprises. Private equity funds can solve the financing difficulties of small and medium-sized enterprises to some extent. \x0d\ Third, it is conducive to the merger and acquisition of enterprises and the integrated flow of resources. M&A is a shortcut to concentrate capital, expand asset scale, improve economic benefits and promote industrial upgrading. Private equity funds are often needed in corporate mergers and acquisitions, and private equity funds have been looking for and evaluating target companies with investment value from a professional perspective. Fourth, it is conducive to the application of financial innovation in private financing. Developing private equity funds can expand direct financing channels, improve the efficiency of transforming savings into investment, alleviate the pressure of excess market liquidity and bank credit expansion, accelerate the cultivation of new investors, deepen the reform of investment and financing system, develop expert financial management and optimize resource allocation.