Regulations on the purchase of stocks by private equity funds_What are the regulations and restrictions in stocks

What are the regulations on the purchase of stocks by private equity funds? What are the key points that investors need to pay attention to when conducting stock operations? What? The following are the rules for private equity funds to purchase stocks that the editor has brought to you. I hope it can help you.

Regulations on the purchase of stocks by private equity funds

The regulations and restrictions on the purchase of stocks by private equity funds will vary according to different laws, regulations and regulations established by regulatory agencies. Below are some common rules and restrictions, but please note that these rules may vary by region and specific circumstances.

Restrictions on investment proportion: According to relevant regulations, private equity funds may have certain restrictions on the proportion of investment in stocks. Typically, regulators stipulate the maximum proportion of a private equity fund's net assets that can be invested in stocks.

Lock-up period restrictions: After private equity funds purchase stocks, there may be certain lock-up period restrictions, that is, they cannot sell or reduce their holdings immediately for a period of time. This is to prevent short-term heavy selling from having an excessive impact on the market.

Restrictions on investment objects: According to regulatory regulations, private equity funds may have some restrictions, such as being able to invest only in specific types of stocks (such as listed company stocks), stocks in specific industries or specific markets.

Business qualification requirements: Private equity funds need to obtain legal business qualifications and practice licenses, and comply with relevant laws, regulations and regulatory agency requirements before they can invest in stocks and other assets.

Reporting and disclosure requirements: When private equity funds purchase stocks, they are usually required to report investment plans and disclose relevant information in accordance with regulatory regulations to ensure transparency and compliance.

The specific details of these rules and restrictions may vary by country, region and regulatory requirements. For specific rules and restrictions on stock purchases by private equity funds, it is recommended to consult your local financial institution, attorney or regulatory agency for accurate information.

Stock market price

The market price of a stock refers to the transaction price reached by both parties during the transaction. The stock price usually refers to the market price. The market price of stocks directly reflects the conditions of the stock market and is the basis for investors to buy stocks. Due to the influence of many factors, the market price of stocks is constantly changing. The stock price is a concentrated expression of the stock market value, so this price is also called the stock market.

Stock liquidation price

The liquidation price of stocks refers to the actual value represented by each share of stock once a joint-stock company is liquidated after bankruptcy or bankruptcy. Theoretically, the liquidation price per share of a stock should be consistent with the book value of the stock. However, when a company is in bankruptcy liquidation, its property value is calculated based on the actual sales price, and when the property is disposed of, its sales price is The price is generally lower than the actual value. Therefore, the liquidation price of the stock will be inconsistent with the net value of the stock. The liquidation price of stocks is only used as the basis for determining stock prices when a joint-stock company loses its legal personality due to bankruptcy or other reasons, and has no meaning in the issuance and circulation process of stocks.

Why is it not recommended to buy and sell stocks frequently?

The fees for stock transactions include commissions, stamp duties and transfer fees. If you buy and sell stocks frequently, the handling fees will be a lot of money. , transaction costs are relatively high, and it is relatively difficult to make money.

Secondly, frequent buying and selling of stocks may increase the possibility of making judgment errors. The more you buy, the more likely it is that mistakes will be made. Therefore, stocks held for a long time can be more rationally judged and analyzed. stock.

Frequent buying and selling of stocks is time-consuming and labor-intensive, and requires a lot of energy to keep track of the market. If you focus on immediate gains, you may ignore long-term gains, and it is easy to lose money when trading stocks. Affects one's own judgment.

After losing money, some investors just want to get their money back quickly, so they will increase their positions. At this time, increasing their positions will increase the risk. When the stock losses are serious, after redemption, I also feel that there is still room for the stock to rise. With such frequent buying and selling, when most of the stocks are losing money, it is possible to lose a lot of principal.

In addition, there are traps everywhere in the stock market. If you are not careful, you may fall into a trap and suffer serious losses. Therefore, when trading in stocks, you must be cautious and avoid frequent operations.

How are Chinese PE institutions classified?

(1) According to the institutional background, my country’s PE institutions can be divided into four major categories: private institutions, state-owned institutions, foreign-funded institutions, and joint venture institutions .

Various types of representative institutions:

Private institutions: Jiuding Investment, Tongchuang Weiye, Tiantu Capital, Dongfang Fuhai, Songhe Capital, etc.;

State-owned institutions : Shenzhen Venture Capital, Dachen Venture Capital, Legend Capital, Shanghai Yongxuan, etc.;

Foreign-funded institutions: IDG Capital, CDH Investment, Sequoia, SAIF Investment Fund, Qiming Venture Partners, SoftBank China etc.;

Joint ventures: Qingyun Venture Capital, Xinzhongli, Purun Investment, CICC, etc.

(2) According to investment types, my country’s PE institutions can be divided into four major factions:

M&A faction: Help China represented by Hony, Hopu and CITIC Industrial Fund PE funds for large enterprises to integrate global industries;

Resource faction: including banks, securities companies and government departments. Banking PEs represented by CCB International can obtain bank loan lists for follow-up investments; PEs established by various securities firms represented by CICC Jiacheng form a combination of investment and insurance operations; Shenzhen Venture Capital, represented by cooperation with government guidance funds across the country, can obtain a list of various government-supported enterprises for selective investment;

Venture Capitalists: Real VCs represented by US dollar funds such as Matrix Partners, Jinshajiang, and Northern Lights that focus on early investment in technological innovation;

Grassrootsists: Most domestic private PEs fall into this category , mainly investing in growth-stage companies.