What does an equity investment company do?

Legal analysis: the equity investment company purchases the equity of the target company through its own assets, including assets whose value can be assessed according to law, such as money, land, houses, intellectual property rights, etc., and then achieves the purpose of holding the equity through agreements or articles of association, and can also obtain benefits through equity transfer, company repurchase, and stock circulation after listing. However, such companies cannot invest by absorbing deposits, raising funds and borrowing money.

Legal basis: Article 23 of the Measures for the Administration of Financial Asset Investment Companies. With the approval of the the State Council Banking Regulatory Authority, a financial asset investment company may engage in some or all of the following businesses:

(a) for the purpose of debt-to-equity swap, acquire the creditor's rights of the bank to the enterprise, convert the creditor's rights into equity, and manage the equity; (2) Reorganizing, transferring and disposing of creditor's rights that cannot be converted into shares; (3) Investing in the equity of an enterprise for the purpose of debt-to-equity swap, and the enterprise will use all the equity investment funds to repay the existing creditor's rights; (4) Raise funds from qualified investors according to laws and regulations, and issue private equity management products to support the implementation of debt-to-equity swaps; (5) Issuing financial bonds. (six) through bond repurchase, interbank lending, interbank lending and other ways to integrate funds. ; (seven) the necessary investment management of its own funds and raised funds; Self-operated funds can be used for interbank deposits, loan trade, purchase of government bonds or other fixed-income securities, etc. ; And the raised funds shall be used in accordance with the agreed purpose of funds; (8) Financial consultation and consultancy services related to the debt-to-equity swap business; (9) Accept the supervision and administration of the State Council Banking.