1. The reasons for the introduction of the strictest supervision measures for private placement in history are as follows: in order to put an end to the chaos that some institutional investors in the private placement industry split the shares of private placement funds and resell them to unqualified investors, the special account for raising funds is supervised to ensure that the funds are not misappropriated by the raising institutions and that the funds are returned in the original way.

2. The "strictest" regulation method for private placement was introduced. On April 15, 216, China Fund Industry Association issued the Measures for the Administration of Private Equity Fund Raising, which involved a number of behavioral norms in private equity fund raising. Among them, it is illegal to promote private placement products through Internet media such as WeChat friends circle. The fund industry association said that the "Measures" came into effect on July 15, and there is still a three-month transition period. The fundraising institutions should complete the relevant behavior rectification and internal system construction as soon as possible.