陳明賢臺灣大學：財務金融學研究所艾赫默德Said, Ahmed MokhtarAhmed MokhtarSaid2007-11-282018-07-092007-11-282018-07-092007http://ntur.lib.ntu.edu.tw//handle/246246/60877The recent surge of the oil prices, the post 9/11 effects on the world political and economical landscapes and the aggressive growth of the emerging Chinese economy pushed the Muslim investors to think of an alternative destination for their growing capital; The Greater China. There is a promising opportunity for an investment flow from the Middle East to China, but there are many obstacles can slow down this flow, and the major one is the absence of any Islamic investment products to cater for the Islamic institutional investors as well as the HNWI. Most of the Muslims prefer to invest in an Islamic-compliant manner which differs from the conventional investment strategies and products. This research finds that, a result to the religious constrains, direct investing and private equity investing are the most desired forms of investments for the Muslim investors due to the flexibility and degree of investors’ involvement in the investment portfolio. Therefore, this research explores the Private Equities and Venture Capital markets in China and introduces models for developing Islamic Private Equity and Venture Capital funds which can cater to both Muslim and conventional investors in any non-Muslim country and will help China to attract more capital from the oil rich Muslim countries.Chapter 1: Introduction································································ 1 1.1 China and the G.C.C·······························································1 1.2 Gulf investors and China market’s entry barriers ·······························3 1.3 The Islamic Finance: Challenges & Opportunities ·····························4 1.4 The organization of this thesis····················································4 Chapter 2: Fundamentals of Islamic Finance·····································6 2.1 Introduction ········································································6 2.2 The Shari’a Islamic Law ···························································7 2.3 The history of Islamic Finance ···················································8 2.4 The definition of Islamic Finance ················································9 2.5 The seven main principles of Islamic Finance ································ 10 2.5.1 Justice, Equality and Solidarity ··········································· 10 2.5.2 Forbidden Objects and Creatures········································ 10 2.5.3 Acquisition of Property Rights ··········································· 11 2.5.4 Usage of Properties························································ 11 2.5.5 No Gain Without Either Efforts or Liabilities ························· 11 2.5.6 General Conditions of Credit ············································ 13 2.5.7 The Duality of Risk························································ 13 2.6 Most important rules for the Islamic Finance································· 14 2.6.1 The prohibition of Riba (interest) ········································ 14 2.6.1.1 Riba in Sales ······················································· 14 2.6.1.2 Riba in Debts ······················································ 15 2.6.2 Profit and Loss Sharing and three important types of contracts······ 15 2.6.2.1 PLS financing contracts ·········································· 16 2.6.2.1.1 Joint Ventures (musharaka)····························· 16 2.6.2.1.2 Trust financing (mudaraba) ····························· 16 2.6.2.2 Non-PLS financing contracts···································· 17 2.7 Securities in Islam Finance ······················································ 17 2.8 Risk management in Islamic Finance ·········································· 18 2.9 The Islamic Law and the future of Islamic Finance ·························· 19 Chapter 3: Guidelines for Islamic Asset Management ························ 20 3.1 Introduction ······································································ 20 3.2 Islamic Investment Funds······················································· 21 3.3 Definition and asset classes ····················································· 22 3.4 Structure ·········································································· 23 3.5 Shari’a supervisory board ························································ 26 3.6 Investment selection ····························································· 27 3.6.1 Qualitative criteria ························································· 28 3.6.2 Quantitative criteria ······················································· 29 3.7 Purification of earnings·························································· 31 3.8 Trading issues····································································· 32 3.9 Conclusion········································································ 34 Chapter 4: Private Equity and Islamic Finance ································ 36 4.1 Introduction ······································································ 36 4.2 The allocation decision ·························································· 36 4.3 Private equity investment and Islam ··········································· 37 4.4 General features of PE/VC investments ······································ 38 4.5 The incentives of private equity investment··································· 40 4.6 Methods of participation ························································ 41 4.7 Choice of funds ·································································· 42 4.7.1 Direct investing ···························································· 44 4.7.2 Funds-of-funds ···························································· 45 4.7.3 Private equity funds ······················································· 46 4.7.4 Buyout funds······························································· 47 4.7.5 Emerging markets ························································· 48 4.7.6 E-business ·································································· 49 4.7.7 Biotechnology/life sciences ·············································· 50 4.8 Private equity and Shari’a ························································ 50 4.9 Conclusion········································································ 51 Chapter 5: Models for developing Shari’a-compliant private equity and venture capital funds ··················································· 53 5.1 Introduction ······································································ 53 5.2 Investee assessment······························································ 57 5.3 Important design variables and common considerations ···················· 60 5.3.1 Choice of fund domicile ·················································· 61 5.3.2 Choice of entity type ······················································ 61 5.3.3 Choice of service providers··············································· 61 5.3.4 Choice of capital structure and securities ······························· 62 5.3.5 Cash management ························································· 63 5.3.6 Corporate governance of funds and SPVs······························ 64 5.3.7 Investment sourcing and deal flow ······································ 66 5.3.8 Limited partner opt-out clause ··········································· 66 5.4 The Models ······································································· 67 5.4.1 Model 1 ····································································· 69 5.4.2 Model 2a···································································· 73 5.4.3 Model 2b ··································································· 77 5.4.4 Model 3 ····································································· 81 5.5 Case study: Big Tree ····························································· 84 5.6 Conclusion········································································ 87 Chapter 6: The future of China’s Private Equities and Venture Capital markets ················································································· 89 6.1 Introduction ······································································ 89 6.2 History of PE/VC in China····················································· 90 6.3 The current environment for PE/VC investments in China and a comparison between Chinese and international practices ·········································································· 93 6.4 The future of PE/VC in China: Opportunities and Challenges ········································································ 97 6.4.1 The gap between banks and stock markets ····························· 99 6.4.2 The search for investment targets······································· 102 6.4.3 The local competition ···················································· 103 6.4.4 Growth opportunities ···················································· 105 6.4.5 Offshore investment structures ········································· 107 6.4.6 Onshore investment structures ········································· 108 6.4.7 Exit strategies ····························································· 109 6.4.8 Redemption ······························································· 111 6.4.9 Tax on sales proceeds ···················································· 112 6.5 Conclusion······································································· 112 Chapter 7: Conclusion ······························································ 114 References············································································· 117 Appendix A: Islamic Financial Institutions by Country ·························· 118 Appendix B: Conventional banks offering Islamic financial services ································································ 122 Appendix C: Specimen investment memorandum ······························· 124868426 bytesapplication/pdfen-US中東金融中小企業公平性風險資本中東投資大中華市場Islamic FinancePrivate EquityVenture CapitalMiddle EastInvestmentsG.C.CGreater China Marketthesishttp://ntur.lib.ntu.edu.tw/bitstream/246246/60877/1/ntu-96-R94723079-1.pdf