Developing a private equity business in China

The private equity business, a good complement to the public equity market and the debt market, has been playing an increasing role in China. However, there is no universal formula for doing this business. As an art rather than a science, it varies from country to country. After two decades of reform and open-door policy, Chinese enterprises are essentially the same as the ones in developed countries. The major difference lies in the different developmental stages and business environments such as the dominant governmental role in China, the lack of business leaders and the immaturity of financial market. This different business environment drives a different market structure including more venture investments than buy outs, more late-stage and pre-IPO investments than early stage, and more investment in private sectors than state-owned enterprises. As a result, the excess of investment capital focuses on the small market of late-stage investments with a high potential of IPO.

Department dc:contributor.department

Sloan School of Management.

Grantor dc:publisher

Massachusetts Institute of Technology

Year dc:date.issued

2007

Author dc:creator

• Gui, Zhaoyu

Advisor dc:contributor.advisor

• Stewart C. Myers.

• Sloan School of Management.

Statement dc:rights

• M.I.T. theses are protected by copyright. They may be viewed from this source for any purpose, but reproduction or distribution in any format is prohibited without written permission. See provided URL for inquiries about permission.

Licence dc:rights.uri

• http://dspace.mit.edu/handle/1721.1/7582

Language dc:language.iso

eng

Handle dc:identifier.uri

http://hdl.handle.net/1721.1/39527

OAI identifier oai:identifier

oai:dspace.mit.edu:1721.1/39527