Challenges and Future Directions in the Institutionalization of Private Equity Fund Management in China
DOI:
https://doi.org/10.71222/8pe3vh93Keywords:
private equity, institutionalization, regulatory framework, corporate governance, investor protectionAbstract
This paper examines the evolution and current status of private equity (PE) fund management in China, highlighting the industry's transition from informal, fragmented practices to a partially institutionalized system. Key challenges in this process include fragmented regulatory oversight, inconsistent policies, weak corporate governance, limited investor protection, talent shortages, and structural market inefficiencies. Drawing on international experiences from the United States and Europe, the study identifies lessons in regulatory frameworks, governance standards, professionalization, and market development that are applicable to China. The paper further outlines future directions for the institutionalization of Chinese PE funds, emphasizing improvements in legal and regulatory systems, enhanced governance and transparency, long-term capital mobilization, talent development, and sustainable market practices, including ESG integration. Strengthening institutional frameworks is essential not only for mitigating risks and protecting investors but also for fostering the long-term stability, efficiency, and competitiveness of China's private equity industry.
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