Generally, investors shall not reduce its subscribed investment in venture investment enterprises during the contract period. If agreed by investors whose investment accounts for 50 per cent of the total investment in the venture investment enterprise and required investors, and if the venture investment enterprises do not go against the requirement on the total investment of at least US$10 million, investors may reduce their contributions with the approval of the competent authorities. Under this circumstance, investors shall make provisions on conditions, procedures and ways of reducing contributions in the contracts for venture investment enterprises.

One thing that need to be clarified is that the following circumstances shall not be restricted by the above-mentioned requirements: Venture investment enterprises may dispose of their interests in the invested enterprises by selling or otherwise, and distribute to their investor the income equal to the original investment therefrom. This kind of distribution constitutes the reduction of the contributed capital investment. Venture investment enterprises shall reach agreements on the specific ways for such distribution in the contracts for the venture investment enterprises, and shall explain to the investors that an application for reduction of the investors' contributed capital investment shall be filed with the approving authority and the local administration of foreign exchange within at least 30 days prior to such distribution. At the same time, they shall specify the amount of investment that investors of the venture investment enterprises have not yet put in place, and testify that the other funds currently owned by the venture investment enterprises are at least enough to meet the requirements on the venture investment enterprises to perform the current investment obligations. But such distribution shall not serve as a ground for pleading against any claim arising from the investors' violation of the investment obligations.