financial products refer to financial products invested in targeted financing plans. Directional financing plan refers to the direct financing products issued and transferred by enterprises in China in a non-public way, and it is agreed to repay the principal and interest within a certain period of time. The total number of investors in each directional financing plan shall not exceed 2. Like debt, investors lend money directly to the financing subject. The yield of such products is usually pre-agreed interest, and the risks of such products are mainly that the project fails or the project falls short of expectations, resulting in the financing subject being unable to repay the interest or principal. The quality of such products usually depends on the quality of the investment projects.

equity products refer to products invested in financial assets such as stocks, equity funds, futures and bonds. Such financial assets are usually circulated in the market (for example, stocks are circulated in the stock market for stock investors to buy and sell). The income of equity products comes from the rise or fall of the price of the invested assets (for example, the product is invested in stock A, which goes up), and the risk also comes from the fall of the price of the invested assets (for example, the product is invested in stock B, which goes down). The quality of such products usually depends on the investment ability of product investment managers, and of course it is highly related to the overall environment of financial markets.