Legal basis: People's Republic of China (PRC) Securities Investment Fund Law.
Article 87 A non-public offering fund shall be raised from qualified investors, and the cumulative number of qualified investors shall not exceed 200. The QFII mentioned in the preceding paragraph refers to the units and individuals that have reached the specified asset scale or income level, have the corresponding risk identification ability and risk-taking ability, and their fund share subscription amount is not less than the specified limit.
Article 94 After the non-public offering of funds is completed, the fund manager shall file with the fund industry association. If the total amount of fund raised or the number of fund share holders reaches the prescribed standards, the fund industry association shall report to the securities regulatory authority in the State Council. Securities investment in non-public offering of fund property includes buying and selling stocks, bonds and fund shares of publicly issued joint stock limited companies, as well as other securities and their derivatives as stipulated by the State Council Securities Regulatory Authority.
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