There are similarities and differences between the asset management plans of fund subsidiaries and private fixed income projects.

First of all, the asset management plan of the fund subsidiary is the carrier for the CSRC to approve the development of trust-like business. It can't advertise, and it can't raise funds publicly in the market. At present, the means of raising funds are mainly through third-party financing and sales of brokerage business departments. From the form of raising funds, it is semi-public, similar to trust.

So what is private placement? Private placement is equity investment in a broad sense, but what you are talking about should be fixed-income private placement funds, and general projects are reflected in the form of creditor's rights. Raising is also through third-party financing, which is different from the traditional private placement for some specific groups, but it is not raised in the open market at present, so it is reasonable and legal.

To sum up, although the asset management plans of fund subsidiaries and private fixed-income products funds are different, they are similar in fundraising channels, post-investment management and related disclosure methods. However, the asset management plan of the fund subsidiary is specially approved by the CSRC and belongs to a new carrier different from trust and private placement. From the risk degree of fixed income products, it is close to private fixed income products and belongs to high-risk fixed income wealth management products.

Conclusion: Asset management plan of fund subsidiary is a new carrier, which has the nature of private placement, but it is not private placement.