Legal analysis: according to the nature of private equity funds, it is normal to have losses without capital preservation. The loss of investment, whether stocks or funds, is borne by investors themselves. As a private equity company, the products issued by private equity funds have corresponding investment portfolios to resist the corresponding ups and downs risks and fully guarantee certain returns.

Legal basis: Article 77 of the Company Law of People's Republic of China (PRC), a joint stock limited company may be established by means of initiation or public offering.

A promoter refers to a company established by the promoters who subscribe for all the shares that should be issued by the company.

The establishment by public offering means that the promoters subscribe for part of the shares that should be issued by the company and raise the remaining shares to the public or specific objects to establish the company.