First of all, let's make sure that formal private equity funds are not deceptive, but in most cases, illegal fund-raising is often done by private equity funds to attract investment. Private equity funds and illegal fund-raising can be distinguished from the following aspects. Please compare carefully to avoid being deceived.

First, from the way of raising funds, generally speaking, illegal fund-raising is aimed at the public, while private equity funds are aimed at specific individuals.

Second, judging from the number of fund-raising objects, if there are more than 50 fund-raising objects, it may be illegal fund-raising. It is precisely because illegal fund-raising is open to the public that more fund-raising targets may be gathered.

Third, judging from the ownership relationship of funds, if it is illegal fund-raising, the ownership of funds will change when the entrustment procedures are handled. Therefore, everyone should pay attention to that if the funds are transferred from the investor account to the fund-raising account and the ownership is transferred, it may be illegal fund-raising.

The Securities Investment Fund Law, the Interim Measures for the Supervision and Administration of Private Equity Funds and other laws and regulations stipulate that all kinds of private equity fund managers should go through the registration and filing procedures of private equity funds in China Asset Management Association (hereinafter referred to as "fund industry association"). Otherwise, they shall not engage in private equity fund business activities.