Basic knowledge of equity investment

Legal analysis: equity investment is an act of investing and buying equity of an enterprise in order to participate in or control its business activities. It can occur in the publicly traded market, when a company is initiated or established, and when shares are transferred privately. The main motives of equity investment are: to obtain income, including dividends and capital gains. Through the adjustment, scheduling and appreciation of assets, we can gain control over assets and gain benefits. Participate in business decisions, spread risks and find business opportunities. Adjust asset structure and increase current assets. This motivation often exists when investing in tradable shares. Speculation in order to obtain the difference between the purchase price and the purchase price often exists when investing in tradable shares.

Legal basis: Law of People's Republic of China (PRC) on Sino-foreign Joint Ventures.

Article 1 In order to expand international economic cooperation and technical exchanges, with the approval of the China Municipal Government, People's Republic of China (PRC) allows foreign companies, enterprises and other economic organizations or individuals (hereinafter referred to as foreign parties) to establish joint ventures with companies, enterprises or other economic organizations in China (hereinafter referred to as Chinese parties) in People's Republic of China (PRC).

Article 2 The China Municipal Government shall protect the investment, profits and other legitimate rights and interests of foreign parties in accordance with the agreements, contracts and articles of association approved by the China Municipal Government.

All activities of a joint venture shall abide by the laws and regulations of People's Republic of China (PRC).

The state does not nationalize or expropriate joint ventures; Under special circumstances, according to the needs of social public interests, a joint venture may be expropriated in accordance with legal procedures and given corresponding compensation.