Legal Analysis: The China Securities Regulatory Commission and its dispatched offices supervise and manage the business activities of private equity funds in accordance with the Securities Investment Fund Law, the Interim Measures for the Supervision and Administration of Private Equity Funds (hereinafter referred to as the Measures) and other relevant provisions of the China Securities Regulatory Commission. The basic principles of supervision are: adhering to "moderate supervision, bottom line supervision, industry self-discipline and promoting development", and clarifying the three bottom lines for the private equity industry to ensure the standardized operation of private equity funds: First, adhering to the principle of "private placement" and not offering shares in disguise; Second, we must strictly manage the appropriateness of investors and insist on raising funds for qualified investors. Third, we must adhere to honesty and law-abiding and abide by the bottom line of professional ethics.

Legal basis: Article 113 of the Securities Investment Fund Law of People's Republic of China (PRC), the State Council Securities Regulatory Authority has the right to take the following measures when performing its duties according to law: (1) conducting on-site inspections on fund managers, fund custodians and fund service institutions and requiring them to submit relevant business materials; (two) to enter the place where the suspected illegal act occurred to investigate and collect evidence; (3) Asking the parties, units and individuals related to the investigated events and asking them to explain the matters related to the investigated events; (four) to consult and copy the information such as property registration and communication records related to the incident under investigation; (five) to consult and copy the securities trading records, registration and transfer records, financial and accounting materials and other relevant documents and materials of the parties and the units and individuals related to the investigated events; Documents and materials that may be transferred, concealed or damaged may be sealed up; (6) Inquiring about the capital accounts, securities accounts and bank accounts of the parties and the units and individuals related to the investigated events; If there is evidence that illegal funds, securities and other property involved have been or may be transferred or concealed, or important evidence has been concealed, forged or destroyed, it may be frozen and sealed up with the approval of the principal responsible person of the securities regulatory agency in the State Council; (7) When investigating major securities violations such as manipulation of the securities market and insider trading, with the approval of the principal person in charge of the the State Council securities regulatory agency, the parties involved in the investigated event may be restricted from buying and selling securities, but the restriction period shall not exceed fifteen trading days; If the case is complicated, it may be extended for fifteen trading days.