A foundation refers to a non-profit legal person established for the purpose of engaging in public welfare undertakings by using the property donated by natural persons, legal persons or other organizations in accordance with the provisions of these regulations. Foundations are divided into those that raise funds for the public and those that are not allowed to raise funds for the public. According to the geographical scope of fundraising, public offering foundations are divided into national public offering foundations and local public offering foundations. According to the Regulations on the Administration of Foundations, foundations must be registered with the civil affairs department before they can operate legally. Essentially, foundations are non-profit organizations.

A fund management company refers to a company established in accordance with relevant laws and regulations to manage fund raising, fund share subscription and redemption, fund property investment, income distribution and other fund operation activities. The legal raising of securities investment funds shall be undertaken by the fund manager. The fund manager shall be a legally established fund management company. As a fund manager, it shall be approved by the the State Council Securities Regulatory Authority. According to the way of establishment, there are closed-end funds and open-end funds; There are contract funds and corporate funds; According to the way of establishment, there are closed-end funds and open-end funds; According to the investment objects, there are stock funds, money market funds, option funds and real estate funds.