From the beginning of 1990s, many emerging economies and regions have relaxed restrictions on their capital markets. At the same time, some of the emerging economic countries and regions that have steadily carried out reform and innovation strategy are faster than the industrialized countries in general. Investment in emerging markets is also associated with an increased risk of high - rate of return and diversification. Total investment in emerging markets in 1990 was 3 times that of 2000, with a 9 fold increase in the form of equity investment.

From an investor's point of view, with the gradual adoption of global funds, tracking the global standard index, including emerging markets, the inflow of funds in emerging markets will be more stable. According to UN statistics, by the end of 2000, American and European institutional investors with total assets of about $14 trillion, which only 1% toward the emerging city, often in the next 10 years, a good investment opportunities to attract, 5% - 10% of these assets will invest in emerging markets often
At the same time, we should also see a huge development potential and broad prospects for some of the emerging economies of countries and regions, as long as the government steadily promoting the opening up and development strategy, the economy is likely to rapid development, so as to provide a good opportunity for investment.

China as a representative of the emerging markets in the world, China's economy is developing rapidly. Last year, China's gross national product (GDP) grew by 7.3%. Foreign investors find that China is an ideal place for investment. They are very optimistic about China's high-speed growth and broad space for growth, is very interested in China to private investment. Overseas private placement of the requirements of the enterprise in fact should be the same as the public, able to do management upgrade.
For example, in 2003, Morgan Stanley teamed up CDH investments, ACTIS, spent more than 200 million yuan investment in the rapid growth of private enterprises Mengniu Dairy in China in recent years, accounting for 32% of the Mengniu's shares, which greatly enhance the Mengniu brand cognition degree and is recognized by the international capital in the upcoming Mengniu overseas listing in the process, greatly increasing the overseas public credibility and its recognition of the value, which is a win-win strategy. Therefore, overseas private placement of small and medium enterprises financing overseas listing, is feasible, has broad prospects for a small and medium enterprises financing.
1, the definition of nouns
Emerging markets (markets emerging)
Emerging market experts mainly invest in securities issued by companies in developing countries or "emerging" financial markets. With their professional knowledge, as well as by stopping these financial information is often very closed market information advantage, they can seize the emerging market due to low efficiency and lead to price mismatch favorable opportunity. They make profits by identifying and investing in assets that are low in price.

But based on emerging markets often appear the lack of liquidity and market infrastructure is not enough, less investment, easier to occur the political crisis and many channels of information barriers and so on, in this field were investment will not be easy. Therefore, investors have to face a large number of investment in developed countries to compare the risk.
However, the same factors that can lead to greater risks can also lead to an attractive investment opportunity. Because they are mostly bullish, emerging markets are widely used by mutual fund managers and hedge fund managers.

Private Equity Fund (equity fund private)

Private equity funds (also known as direct investment usually invest in seed (seed money period and growth period (growth capital enterprises, venture investment (venture capital funds, including investment expansion enterprises direct investment funds and management buyouts, mergers and acquisitions investment (buy-out fund participation and LBO fund. Investment in the transition period mezzaninebridge enterprises or listed (pro-ipo) enterprise Bridge Fund is a private equity fund investment category, who in the enterprise prior to the listing of the equity investment are the investment industry.
The investment process may involve venture capital investment or leveraged buyout transactions. By the securities broker or an entrepreneurial venture organization of venture capital investment partners Co., Ltd. is a newly formed company, or is in a growing company with an initial or is in the early development of a product or service companies to raise needed funds. The partner is generally in exchange for the equity interest of the company. A limited number of partners gain income from the company's profits. If the company operates successfully and obtains the listing qualification, a limited number of partners can sell the shares held by the public to the public, the investment and profit. For LBO managers using borrowed funds to purchase a company's ownership.

In most cases, the Target Corp's assets will be used as collateral for the purchase of loans. Management can use this technique to obtain control, the company from public corporation to Private Companies. In almost all of the leveraged buyouts, public investors can get higher than the current price premium.