According to the provisions of the Notice on Banning Illegal Financial Institutions and Illegal Financial Business Activities, illegal fund-raising refers to the behavior that a unit or individual raises funds from the public by issuing stocks, bonds, lottery tickets, investment fund securities or other creditor's rights certificates without the approval of legal procedures, and promises to repay the principal and interest to investors in cash, in kind or in other ways within a certain period of time.

According to the relevant provisions of the Notice on Further Combating Illegal Fund Raising (Yinfa [1999] No.289), "illegal fund raising" can be summarized as follows:

(1) Absorb funds by issuing securities, membership cards or debt certificates.

It is common to issue or issue certificates of rights such as stocks, bonds, lottery tickets and investment funds in the name of futures trading and pawn, or illegally raise funds. Illegal fund-raising by claiming shares, participating in dividends, entrusting investment, entrusting financial management, etc. Illegal fund-raising through membership cards, membership cards, seat cards, discount cards, consumption cards, etc.

(2) Divide real estate, real estate and other assets into equal parts, and raise funds at high interest rate by selling their shares.

⊙ The latest change is: illegal fund-raising by selling its share and promising to sell it for leaseback, after-sale repurchase and regular rebate.

(3) Illegal fund-raising in the form of folk clubs.

⊙ Recent changes: using underground banks to raise funds.

(four) illegal fund-raising in the form of signing economic contracts such as commodity distribution.

⊙ Common ways are: selling and leaseback, repurchase and transfer, developing members, joining businesses and illegal fund-raising by "quick points method".

(5) Issuing lottery tickets or issuing them in disguised form to raise funds;

(six) illegal fund-raising in the form of pyramid schemes or secret series;

(7) illegal fund-raising in the form of orchard or manor development.

For example, illegal fund-raising in the name of planting, breeding, project development, manor development, ecological and environmental protection investment, etc.

(eight) the use of modern electronic network technology to build "electronic shops", "electronic department stores" and other "virtual" products to invest in entrusted operations, repurchase and other illegal fund-raising activities.

(nine) illegal fund-raising by setting up investment funds through the Internet;

(10) Illegal fund-raising in the form of "electronic gold investment".

The premise of illegal fund-raising is illegal, and legal fund-raising is to raise funds within the scope prescribed by law.