The following three elements can be recognized as illegal fund-raising: 1. promise to repay the principal and interest or give other investment returns, that is, inducement. 2、 Without the legal permission of the financial management department of the State Council or in violation of the national financial management regulations, it is illegal. 3、 Absorb funds from unspecified objects, that is, sociality. The state prohibits any form of illegal fund-raising, and adheres to the principle of prevention first, early fight against small ones, comprehensive treatment, and safe disposal of illegal fund-raising.
 Legal basis
 Article 2 of the Regulations on Prevention and Disposal of Illegal Fund Raising
 The term "illegal fund raising" as mentioned in these Regulations refers to the act of absorbing funds from unspecified objects by promising to repay the principal and interest or give other investment returns without the legal permission of the financial regulatory department of the State Council or in violation of the national financial regulations.
 These Regulations shall apply to the prevention of illegal fund-raising and the disposal of illegal fund-raising by administrative organs. Where laws and administrative regulations provide otherwise for illegal financial activities such as banking, securities, insurance and foreign exchange, such provisions shall apply.
 The financial management department of the State Council referred to in these Regulations refers to the People's Bank of China, the financial supervision and regulation institution of the State Council and the foreign exchange management department of the State Council.