June 13th news – The Supreme Peoples Procuratorate has released the 44th batch of guiding cases with financial crimes as the main theme. The head of the fourth procuratorial department of the Supreme Peoples Procuratorate answered questions from reporters regarding the 44th batch of guiding cases, stating that private equity funds are a way of raising funds that are not publicly offered and are significantly different from public offerings. The issuance and sale of private equity funds must be done in accordance with laws and regulations and must not cross the "private equity" bottom line. The above-mentioned person in charge pointed out that the key to distinguishing legal private equity funds from illegal fundraising is that private equity funds must not engage in disguised self-financing, must not publicly advertise to the public, must not promise that the funds will not incur losses or guarantee the minimum returns, and must not raise funds from entities and individuals other than qualified investors. The number of individual investors in a single private equity fund must not exceed a certain limit, as stipulated in the "Interim Measures for the Supervision and Administration of Private Investment Funds", which clearly states that the cumulative number of fund unit holders shall not exceed 200 people. If the fundraising process involves any of the above-mentioned prohibited actions, it not only violates relevant laws and regulations on the management of private equity funds but also violates regulations on preventing and dealing with illegal fundraising, such as the "Commercial Bank Law of the People's Republic of China" and the "Regulations on the Prevention and Control of Illegal Fundraising". This is no longer a "private equity" behavior but a case of illegal fundraising, which should be criminally prosecuted.