Private placement fund (hereinafter referred to as private placement fund) refers to an investment fund established by raising funds from investors in a private way in People's Republic of China (PRC). The investment of private equity fund property includes buying and selling stocks, equity, bonds, futures, options, fund shares and other investment targets agreed in investment contracts. For companies and partnerships established for the purpose of raising funds for investment activities by private placement, if the assets are managed by fund managers or general partners, the relevant laws and regulations on private placement funds shall apply to their registration, fund raising and investment operation.

According to the different organizational forms, private equity funds can be divided into three categories:

(1) A contractual fund refers to a private equity fund established by contract without legal person status. Fund managers, investors and other fund participants exercise corresponding rights and assume corresponding obligations and responsibilities according to the contract.

(II) Corporate fund refers to an independent legal person institution established by investors in accordance with the Company Law-a fund company, which is managed by itself or entrusted by a special fund manager. Investors are not only fund share holders, but also shareholders of fund companies, exercising corresponding rights and undertaking corresponding obligations and responsibilities in accordance with the articles of association of the company.

(3) The term "partnership fund" refers to a limited partnership enterprise in which investors set up investment funds in accordance with the Partnership Enterprise Law. The general partner shall bear unlimited joint and several liability for the partnership debts, and the fund manager shall be specifically responsible for the investment operation.