How do investment companies make profits?

The profit mode of investment management includes project investment, which is similar to intermediary, and can also be used for project financing and investment management. A financial asset investment company shall have shareholders, registered capital and business premises that meet the statutory requirements.

legal ground

Article 7 of the Measures for the Administration of Financial Asset Investment Companies

A financial asset investment company shall meet the following conditions:

(1) It has articles of association that conform to the Company Law of People's Republic of China (PRC) and the provisions of the State Council Banking Regulatory Authority;

(2) Having shareholders and registered capital that meet the requirements of these Measures;

(3) Having directors, senior managers and qualified employees who are familiar with the business;

(4) Establishing an effective corporate governance, internal control and risk management system, and having an information technology system suitable for business operation.

(5) Having business premises, safety precautions and other facilities suitable for business operation;

(6) Other prudential conditions as stipulated in the rules and regulations of the State Council Banking Regulatory Authority.