Private Equity in China

Private equity is an important source of funds for start-ups, private middle market firms, firms in financial distress and public or private firms seeking buyouts. This book investigates the industry of private equity in China by documenting its development and identifying challenges underlying the industry. In particular, the book compares and contrasts the institutional factors in China to understand the unique social and economic drivers of private equity in China and the value creation.

The book highlights a key challenge of private equity which is mainly due to the dominant government role in China, the lack of business talents and immaturity of financial institutions and markets. Given these constraining factors, the key business strategies for private equity have to address the following concerns: first, to create value to the companies in a competitive market by providing industry upgrade, productivity improvement and innovative technology; second, to originate deals by helping the government to achieve public goals of restructuring and integrating segmented industries and accelerating globalization and modernization of businesses; third, seek investment opportunities to complement immature financial markets.