China has one of the fastest growing and potentially largest economies in the world,yet there is very little or no private equity investment.Why?

Question

Quizplus · Accepted Answer

Private equity investments rely heavily on legally enforceable contracts and property rights, which are still developing in China. Until these fundamental issues are resolved, private equity investment in China will likely remain limited. Option A is not completely accurate as there are some attractive investment opportunities in China, but the legal framework is preventing the growth of Private equity. Option C is also not entirely accurate as the stock market does not necessarily provide the same type of funding and investment opportunities as private equity.

China Has One of the Fastest Growing and Potentially Largest