First of all, in civil law, the law can be done without prohibition. If the law does not prohibit this kind of behavior, it is not illegal in theory; Secondly, at present, China's laws do not stipulate that natural persons have the subject qualification to organize and initiate fundraising.
Legal basis: Interim Measures for the Supervision and Administration of Private Investment Funds
Article 1 In order to regulate the activities of private investment funds, protect the legitimate rights and interests of investors and related parties, and promote the healthy development of the private investment fund industry, these Measures are formulated in accordance with the Securities Investment Fund Law and the Opinions of the State Council on Further Promoting the Healthy Development of the Capital Market.
Article 2 The term "private investment fund" as mentioned in these Measures refers to an investment fund established by private offering from investors within the territory of People's Republic of China (PRC). 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.
Article 3 Private equity fund business shall follow the principles of voluntariness, fairness, honesty and credibility, safeguard the legitimate rights and interests of investors, and shall not harm the national and social public interests.