What do investment companies mainly do?

The business scope of investment companies includes buying stocks and bonds of enterprises, participating in the establishment and business activities of enterprises, providing medium and long-term loans, operating domestic and foreign government bonds, fund management and so on. The main sources of funds are issuing their own bonds, stocks or fund units, obtaining loans from other banks and accepting entrusted deposits.

Related instructions

As a company that pools investors' capital and conducts professional investment management to spread risks and improve returns, investment companies play an important role in the securities market:

As an institutional investor, it is conducive to the stability of the securities market and the orderly development of the market.

As an important investment method, it can improve the investment structure of the securities market and promote the deepening of financial reform. Nowadays, the penetration of investment funds into the securities market far exceeds that of other financial commodities.

As an international investment carrier, investment companies are conducive to promoting the internationalization of the securities market. For example, some newly industrialized countries, such as South Korea, Singapore and Thailand, set up national investment companies to attract foreign investment into their securities markets, which not only attracts foreign investment, but also helps to realize the integration of their securities markets with the international securities markets.