The Improvement of the Legal Protection System for Private Equity Investors in China

Abstract

Private equity has become more common in recent years, and the number of investors involved is increasing. Participating in private equity investment can be very profitable, but there are also high risks, how to effectively prevent investors from encountering risks and ensure the good development of the industry is an important issue in front of us. The reason why private equity investors are vulnerable to risks is mainly due to two reasons, on the one hand, the high degree of information asymmetry in this activity, and on the other hand, because of the problems in China's relevant legal protection system, which is not yet perfect. Although China has promulgated some laws and regulations on the protection of the interests of private equity investors, there are still many loopholes in these laws and regulations, and they need to be improved, based on this, this article summarizes the problems existing in China's legal protection system for private equity investors, and puts forward suggestions for improving these problems, hoping to provide reference for relevant people.