Legal analysis: Private equity, that is, private equity investment, refers to an investment method that invests in unlisted equity or non-publicly traded equity of listed companies.

Legal basis: "Notice of the General Office of the National Development and Reform Commission on Promoting the Standardized Development of Equity Investment Enterprises" 1. Regulating the establishment, capital raising and investment fields of equity investment enterprises (2) Capital raising.

Capital of equity investment companies can only be raised through private placement from specific qualified investors with risk identification capabilities and risk tolerance. They are not allowed to publish announcements in the media (including various websites), post notices in the community, or distribute leaflets to the society.

, send mobile phone text messages to the public or hold seminars, lectures and other public or disguised public methods (including placing prospectuses at the counters of commercial banks, securities companies, trust investment companies, etc.), directly or indirectly to unspecified or non-

Qualified investors are recommended.

Capital raisers of equity investment companies must fully disclose investment risks and possible investment losses to investors, and must not promise investors to ensure the recovery of investment principal or obtain fixed returns.