The investment in a single stock cannot exceed 10% of the product size of a single fund. The number of shares held by all products of a fund company shall not exceed 10% of a single stock. These two 10% are regulatory red lines, which shall not be crossed unless there are special circumstances. If there are special circumstances, the regulatory authorities will order them to report the plan and solve it as soon as possible.

Private equity funds have no such requirements, and they are free and unrestricted. As long as they do not constitute market manipulation, there are no restrictions on normal transactions, as long as the regulatory authorities do not identify market manipulation. This is the performance of low private placement restrictions. Many private investors buy a stock. Or holding a large proportion of a stock, generally limited by the placard regulations, will not exceed 5%.