Private placement is strictly restricted in China, because it can easily become "illegal fund-raising". The difference between the two is whether to raise funds for the general public and whether the ownership of funds has been transferred. More than 50 people raise funds and transfer them to personal accounts, which is regarded as illegal fund-raising. Illegal fund-raising is a very serious economic crime that can be sentenced to death, such as Wu Ying in Zhejiang, Tang Wanxin in Delong and Madoff in the United States.

At present, China's private placements mainly include: private securities investment funds, which are also called sunshine private placements after Sunshine (investing in stocks, such as asset management companies such as Stock Win Asset Management Company, Chunxin Asset Management Company, Wudang Asset Management Company and Xingshi Asset Management Company), private real estate investment funds (few at present, such as Jincheng Capital and Xinghao Investment) and private equity investment funds (that is, PE, which invests in the equity of unlisted companies for the purpose of IPO, such as Ding.

The QDLP policy, which is being piloted in Shanghai recently, has increased overseas private equity funds for the domestic capital market in a historic way. For example, international hedge funds (such as quantum funds) and overseas private equity funds (such as Genghis Khan Fund Management).