Bonds are creditor's rights and debt certificates issued to investors when the government, financial institutions and industrial and commercial enterprises directly borrow money from the society to raise funds, and promise to pay interest at a certain interest rate and repay the principal according to the agreed conditions. The essence of bonds is the proof of debts. There is a creditor-debtor relationship between bond buyers and issuers. The issuer is the debtor and the investor (bondholder) is the creditor. Bond is a valuable security.
Private equity funds are relative to public offerings, and generally only raise funds in small circles. The amount of funds needed is generally more than1-2 million. Private placement is strictly restricted in China, because it can easily become "illegal fund-raising". The difference between them lies in whether to raise funds for the general public and whether the ownership of funds has been transferred. More than 50 people raise funds and transfer them to personal accounts, which is regarded as illegal fund-raising. Illegal fund-raising is a very serious economic crime that can be sentenced to death, such as Wu Ying in Zhejiang, Tang Wanxin in Delong and Madoff in the United States. Rong Xin si mu