Legal analysis: funds are regulated by law. It is strictly forbidden for any private fund company or individual to engage in illegal private fund activities in any name. Otherwise, it will be suspected of money laundering, defrauding the state finances and disturbing the financial order. The establishment, operation, management, operation, expansion, merger, reorganization, bankruptcy, transfer and change of major executives of private equity funds and private equity companies must be reported to the state management agencies for filing and approval according to law.

Legal basis: Interim Measures for the Supervision and Administration of Private Equity Funds Article 31 The China Securities Regulatory Commission and its dispatched offices shall conduct statistical monitoring and inspection on the private equity business carried out by private equity service institutions such as private equity fund managers, private equity fund custodians and private equity fund sales organizations according to law.