Is Shanhai an illegal fund-raising?

However, legal fund-raising means that companies, enterprises, organizations and individuals raise the required funds in the capital market by issuing securities to the public or by means of financial leasing, joint ventures, joint ventures and enterprise fund-raising in accordance with the conditions and procedures stipulated by relevant laws and regulations. For example, a joint stock limited company or a limited liability company issues shares or bonds to raise funds for the purpose of establishment or production and operation.

Legal basis: According to Article 69 of the Notice on Banning Illegal Financial Institutions and Illegal Financial Business Activities, illegal fund-raising refers to the act that a unit or individual raises funds from the public by issuing stocks, bonds, lottery tickets, investment fund securities or other creditor's rights certificates without the approval of relevant departments in accordance with legal procedures, and promises to repay the principal and interest to investors in cash, in kind or in other ways within a certain period of time.