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Is private equity fund legal in China?
Private equity funds are legal in China as long as they meet the statutory forms and requirements.

On July, 2065438+2004 1 1, the CSRC officially promulgated the Interim Measures for the Supervision and Administration of Private Investment Funds, which listed qualified investors in a separate chapter. It is clear that the investor amount of private equity funds cannot be less than 6,543,800 yuan.

According to the new requirements, "qualified investors" should have the corresponding risk identification ability and risk-taking ability. The amount invested in a single private equity fund cannot be less than 6,543,800 yuan. The investor's personal net assets are not less than 6,543,800 yuan, personal financial assets are not less than 3 million yuan, and the average annual income in the last three years is not less than 500,000 yuan.

Because institutional investors, such as enterprise annuities, charitable funds, social security funds and investment plans, which are established according to law and supervised by the State Council financial supervision and management institutions, have strong risk identification ability and risk tolerance. Private fund managers and employees are fully aware of the private funds they manage, so they are also recognized as qualified investors.

Extended data:

Fund is one of the important components of securities. Funds can be divided into Public Offering of Fund and private equity funds. Public Offering of Fund is generally publicly issued in the securities market, and private equity funds cannot be traded freely in the securities market.

How to judge the legitimacy of a private equity fund

1. Managers of various private equity funds shall go through the registration and filing procedures through the private equity fund registration and filing system of China Asset Management Association. Otherwise, they shall not engage in private equity fund business activities.

2. Those who participate in the private placement must be qualified investors. Qualified investors are defined by the CSRC: the minimum subscription is 654.38+0 million, and Tuo Dou is not allowed (money from relatives and friends is not allowed). This definition means that you have to invest some of all your money. You can't put eggs in one basket, let alone other people's eggs.

Therefore, whether you are a qualified investor or not, it is basically deceptive to encourage you to invest in private placements below 654.38+0 million.

3. Private placement must not be publicized. The new "Fund Law" clearly stipulates that it is not allowed to publicize to unspecified objects through newspapers, radio stations, the Internet and other public media or lectures, reports and analysis meetings.

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