Legal analysis: At present, China's regulations on private placement of general partners are mainly restricted from other aspects, and the requirements for capital contribution are not obvious. Judging from the current international practice, fund managers generally hold 3%-5% of the shares of the fund. In case of loss, the shares owned by the manager will be used to pay the participants first. At present, the requirement for private fund managers in China is mainly to review the registered items of private fund managers. According to the Measures for the Registration of Private Fund Managers and Fund Filing (Trial), private fund managers should go through the registration procedures of fund managers with the fund industry association and apply to become members of the fund industry association. Moreover, when applying for registration, private fund managers should truthfully fill in the basic information of fund managers, senior managers and other employees, shareholders or partners and managed funds through the private fund registration and filing system.

Legal basis: Article 3 of the Interim Measures for the Supervision and Administration of Private Investment Funds shall follow the principles of voluntariness, fairness, honesty and credibility, safeguard the legitimate rights and interests of investors, and shall not harm the national interests and social public interests.