What exactly does an investment company do?

Investment companies concentrate the funds of individual investors and invest in securities or other assets. Its business scope includes purchasing stocks, bonds and fund management issued by enterprises according to law. An investment company engaging in securities business shall be approved by the the State Council Securities Regulatory Authority and obtain a license to engage in securities business.

legal ground

Article 120 of the Securities Law of People's Republic of China (PRC)

With the approval of the State Council Securities Regulatory Authority, a securities company may engage in some or all of the following securities businesses:

(1) Securities brokers.

(2) Securities investment consultation;

(3) Financial advisers related to securities trading and securities investment activities;

(4) Securities underwriting and sponsorship.

(5) Margin trading.

(6) Market transactions of securities.

(7) Securities are self-operated.

(8) Other securities businesses.