Private fund: that is, under the strict supervision of China Securities Regulatory Commission, private funds are raised from a few specific investors and invested in secondary markets such as stocks, bonds and futures to realize income.

Private equity funds have gone through thirteen years in China. Since Zhao Danyang and SZITIC established the first Sunshine Private Equity Fund in 2004, the private equity fund industry in China has gone through a history of 13 years, and both the number of private equity practitioners, the number of products and the management scale have developed rapidly. With the development of China stock market, private equity has become an important force in the capital market.

In recent ten years, various private equity funds have developed rapidly in China. By the end of June 30, 2007, there were 19708 private fund managers registered with the fund industry association, and 56576 private funds had been put on record, with a paid-in scale of 9.37 trillion yuan.