IDEAS home Printed from
   My bibliography  Save this paper

Private equity in China and in Europe: an institutional comparative study


  • Xieshu Wang



Investments by funds in the equity of non listed companies represent a particular activity of capitalism of the 21st Century. This study provides an analysis of the development and the characteristics of private equity funds operating in China. It applies the framework of institutional theory using a multi-disciplinary approach and compare Chinese, French and British funds. Our analysis suggests that private equity in China is characterized by a stronger influence of the Chinese state, an extensive impact of guanxi, a more diverse use of information sources, a more limited choice of financial tools and the preference of Chinese entrepreneurs to keep control of their firms. Our econometric study also indicates that the rigidity of labor market, economic openness and taxation on company profits have the greatest impact on the activity of all funds. In comparison with France, the UK and the US, China has stronger coefficients regarding GDP growth, household consumption growth, political stability and infrastructure.

Suggested Citation

  • Xieshu Wang, 2016. "Private equity in China and in Europe: an institutional comparative study," CEPN Working Papers 2016-11, Centre d'Economie de l'Université de Paris Nord.
  • Handle: RePEc:upn:wpaper:2016-11

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Se-Eun Jeong & Jacques Mazier & Jamel Saadaoui, 2010. "Exchange Rate Misalignments at World and European Levels: a FEER Approach," International Economics, CEPII research center, issue 121, pages 25-58.
    2. Saadaoui, Jamel, 2015. "Global imbalances: Should we use fundamental equilibrium exchange rates?," Economic Modelling, Elsevier, vol. 47(C), pages 383-398.
    3. Jamel Saadaoui, 2015. "Does financial openness explain the increase of global imbalances before the crisis of 2008?," International Economics, CEPII research center, issue 143, pages 23-35.
    4. Virginie Coudert & Cécile Couharde & Valérie Mignon, 2013. "On Currency Misalignments within the Euro Area," Review of International Economics, Wiley Blackwell, vol. 21(1), pages 35-48, February.
    5. Didier Borowski & Cecile Couharde, 2003. "The Exchange Rate Macroeconomic Balance Approach: New Methodology and Results for the Euro, the Dollar, the Yen and the Pound Sterling," Open Economies Review, Springer, vol. 14(2), pages 169-190, April.
    6. C. Couharde & J. Mazier, 2001. "The equilibrium exchange rates of European currencies and the transition to euro," Applied Economics, Taylor & Francis Journals, vol. 33(14), pages 1795-1801.
    7. William R. Cline, 2008. "Estimating Consistent Fundamental Equilibrium Exchange Rates," Working Paper Series WP08-6, Peterson Institute for International Economics.
    8. Jamel Saadaoui, 2011. "Exchange Rate Dynamics and Fundamental Equilibrium Exchange Rates," Economics Bulletin, AccessEcon, vol. 31(3), pages 1993-2005.
    9. Jamel Saadaoui & Jacques Mazier & Nabil Aflouk, 2013. "On the determinants of exchange rate misalignments," Applied Economics Letters, Taylor & Francis Journals, vol. 20(18), pages 1608-1610, December.
    10. John Williamson, 1994. "Estimating Equilibrium Exchange Rates," Peterson Institute Press: All Books, Peterson Institute for International Economics, number 17.
    11. repec:hal:wpaper:halshs-00829460 is not listed on IDEAS
    12. Rebecca L Driver & Peter F Westaway, 2005. "Concepts of equilibrium exchange rates," Bank of England working papers 248, Bank of England.
    13. Carton, Benjamin & Hervé, Karine, 2012. "Estimation of consistent multi-country FEERs," Economic Modelling, Elsevier, vol. 29(4), pages 1205-1214.
    14. Lòpez-Villavicencio, Antonia & Mazier, Jacques & Saadaoui, Jamel, 2012. "Temporal dimension and equilibrium exchange rate: A FEER/BEER comparison," Emerging Markets Review, Elsevier, vol. 13(1), pages 58-77.
    15. Se-Eun Jeong & Jacques Mazier, 2003. "Exchange Rate Regimes and Equilibrium Exchange Rates in East Asia," Revue économique, Presses de Sciences-Po, vol. 54(5), pages 1161-1182.
    16. repec:hal:cepnwp:halshs-00829460 is not listed on IDEAS
    Full references (including those not matched with items on IDEAS)

    More about this item


    Private equity; China; Europe;

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:upn:wpaper:2016-11. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Pascal Seppecher). General contact details of provider: .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.