| While promoting direct financing and serving the real economy, private equity funds in China have experienced frequent irregularities in fundraising, registration and filing, investment operations, and information disclosure due to insufficient self-regulation. The problem of fund managers breaching fiduciary duties through unauthorized and non-transparent diversion of client funds, which heightens investment risks, warrants attention in practice. The interpretation method can be expanded, combined with the reshaping of financial security legal interests and the principle of unity of legal order, to include it in the scope of regulation of the crime of breach of trust in the use of entrusted assets. Not only can it respond to criticisms of "zombie charges" at the legislative level, but it can also effectively avoid the abuse of illegal fundraising charges in judicial application, while safeguarding financial innovation and ensuring financial security. |