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Venture investment enterprises shall not engage in the following activities: Investment in sectors that foreign investment is prohibited by State; direct or indirect investment in listed stocks and corporate bonds, except for the case that venture investment enterprises hold shares of their invested enterprises that go public; direct or indirect investment in non self-use real estate; investment with loans; appropriation of non-own funds to make investment; providing loans or guarantee to others, except the investment of venture investment enterprises in corporate bonds and convertible bonds of the enterprises in which they invested for one year and more (This regulation does not provide whether the invested enterprises can issue such bonds); other items prohibited by laws, regulations and the contract for venture investment enterprises.
That is to say, the businesses of venture investment enterprises, in general principle, conform to the State policy of opening to the outside world and basic legal requirements on enterprises. The sectors of investment cannot breach the provision in the Directory of Industries for Foreign Investment, and enterprises cannot provide reciprocal credit lines.
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