People's Republic of China (PRC) Securities Law Chapter II Securities Issuance.
Article 10 The public offering of securities must meet the conditions stipulated by laws and administrative regulations, and be reported to the securities regulatory authority of the State Council or the department authorized by the State Council for approval according to law; No unit or individual may publicly issue securities without approval according to law.
In any of the following circumstances, it is a public offering of shares:
(1) Issuing securities to unspecified objects;
(2) Issuing securities to a specific target with a total of more than 200 people;
(3) Other issuance acts as stipulated by laws and administrative regulations. Non-public issuance of securities shall not be carried out by advertising, public persuasion or disguised publicity.
Extended data
The characteristics of private equity funds:
The operation mode of private equity fund is equity investment, that is, through capital increase and share expansion or share transfer, the shares of unlisted companies are obtained, and profits are made through share value-added transfer. The characteristics of equity investment include:
1. The return on equity investment is very rich. Unlike creditor's rights investment, which earns a certain percentage of interest income from invested capital, equity investment obtains dividends from the company's income according to the proportion of capital contribution. Once the invested company is successfully listed, the profit of private equity investment fund may be several times or dozens of times.
2. Equity investment is accompanied by high risks. Equity investment usually needs to go through several years of investment cycle, and because it is invested in developing or growing enterprises, the development risk of the invested enterprises themselves is very high. If the invested enterprise ends in bankruptcy, the private equity fund may lose all its money.
3. Equity investment can provide all-round value-added services. Private equity investment not only injects capital into the target enterprise, but also injects advanced management experience and various value-added services, which is also a key factor to attract enterprises.
While meeting the financing needs of enterprises, private equity investment funds can help enterprises improve their management ability, expand procurement or sales channels, integrate the relationship between enterprises and local governments, and coordinate the relationship between enterprises and other enterprises in the industry. All-round value-added services are the highlight and competitiveness of private equity investment funds.
Baidu Encyclopedia-People's Republic of China (PRC) Securities Law
Baidu Encyclopedia-People's Republic of China (PRC) Securities Investment Fund Law