Private placement fund refers to an investment fund established in People's Republic of China (PRC), which collects funds from more than two investors in a private way and obtains financial returns. The investment of private equity fund property includes buying and selling stocks, equity, bonds, futures, options, fund shares and other investment targets agreed in investment contracts.

Private equity funds are mainly divided into four types: private equity funds, venture capital funds, private equity funds and other types of private equity funds. Where 1. Private equity funds mainly invest in publicly traded stocks, bonds, futures, options, fund shares and other securities and their derivatives stipulated by China Securities Regulatory Commission; 2. Venture capital fund, which mainly makes equity investment in growth enterprises at all stages of entrepreneurship; 3. In addition to venture capital funds, private equity funds mainly invest in non-publicly traded corporate equity; 4. Other types of private equity funds invest in areas other than securities and their derivatives and equity.