The primary market of private equity funds can be in line with international standards. In China, private equity funds can be said to be produced without birth certificates issued by relevant departments, but this does not prevent them from growing up and making other peers a little envious, not only developing rapidly.

In addition, in the development, international standards were adopted in a standardized way from the beginning. Compared with the chaotic management of the securities industry, the self-discipline of private equity funds so far is amazing. So far, such a large-scale plate has not been openly controversial.

Problems reflected by the current situation of private equity funds

The current situation of private equity funds once again reflects that the order maintained by the original social contract relationship can often exercise more effective functions than strong government supervision. According to the survey, the general private equity fund companies sign financial management contracts with customers in accordance with international practices. Facts have proved that both the company and the customer have fulfilled their respective rights and obligations in strict accordance with the provisions of the contract.

Although according to the current laws of our country, the private equity fund itself is illegal, and the contracts it signed are also illegal. However, China's civil law and economic contract law also stipulate that illegally signed contracts are not protected by law, but if illegally signed contracts cause losses to one party, the party at fault shall be liable for compensation.

Therefore, in the process of financial management on behalf of customers, although the nature of the contract is illegal, it is still strictly bound by the signatory.