Legal analysis: Private equity funds do not belong to securities investment funds. Private equity funds are funds raised privately or directly from specific groups. On the other hand, public offering funds raise funds from the public. Private equity funds are small in scale and subject to many restrictions. The profit model lies not in the management scale, but in the return on investment.

Legal basis: Article 94 of People's Republic of China (PRC) Securities Investment Fund Law. After the non-public offering of funds is completed, the fund manager shall file with the fund industry association. If the total amount of fund raised or the number of fund share holders reaches the prescribed standards, the fund industry association shall report to the securities regulatory authority in the State Council. Securities investment in non-public offering of fund property includes buying and selling stocks, bonds and fund shares of publicly issued joint stock limited companies, as well as other securities and their derivatives as stipulated by the State Council Securities Regulatory Authority.