Compared with public offering, private offering is defined as public offering and private offering, or public offering and private offering according to different securities issuance methods and whether securities are issued to unspecified public. The "private fund" or "underground fund" often mentioned in the financial market is a collective investment that does not publicize publicly and raises funds privately from specific investors. There are basically two ways: first, contractual collective investment funds based on signing entrusted investment contracts. The second is to set up an enterprise collective investment fund of a joint-stock company on the basis of * * *. First, private equity funds raise funds in a private way. Secondly, in terms of fundraising targets, private equity funds are only targeted at a few specific investors, and the circle is small but not low. Third, unlike Public Offering of Fund's strict information disclosure requirements, the requirements of private equity funds in this respect are much lower, and the government supervision is relatively loose, so the investment of private equity funds is more hidden, the operation is more flexible, and the chances of obtaining high returns are correspondingly greater.

Legal objectivity:

Article 2 of the Interim Regulations on the Administration of Private Investment Funds

The term "private investment fund" as mentioned in these Measures refers to an investment fund set up in People's Republic of China (PRC) by raising funds from investors in a non-public way.

The investment of private equity fund property includes buying and selling stocks, equity, bonds, futures, options, fund shares and other investment targets agreed in investment contracts.

These Measures shall apply to the registration, fund raising and investment operation of companies or partnerships established for the purpose of investing in private equity funds and assets managed by fund managers or general partners.

These Measures shall apply to securities companies, fund management companies, futures companies and their subsidiaries engaged in private equity fund business. Where other laws and regulations and the relevant provisions of China Securities Regulatory Commission (hereinafter referred to as China Securities Regulatory Commission) provide otherwise for the above-mentioned institutions to engage in private equity fund business, such provisions shall apply.