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.
According to Article 3 of the Interim Measures for the Supervision and Administration of Private Investment Funds, engaging in private equity fund business shall follow the principles of voluntariness, fairness, honesty and credibility, safeguard the legitimate rights and interests of investors, and shall not harm the national and social public interests.