A Discussion on the Operational Mechanism of Private Equity in China

This article analyses and makes a research on the financing, investment, management and exit mechanism in the operational process of private equity(PE). In the end, the author puts forward four suggestions including updating financing structure, widening financing channels, establishing financing investment risk and technology evaluation systems, establishing the OTC market and consummating the incentive pay contract mechanism, improving the structure of the capital market, and rolling out supporting policies about PE by the government simultaneously.