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The difference between equity investment and creditor's rights investment
Equity investment is the operation that investors buy the equity of a company to participate in its business activities. Creditor's right investment refers to the investment method in which creditors buy bonds and collect principal and interest from bond issuers at maturity. From this perspective, equity investment and debt investment are different in definition, so it is not surprising that there are other differences. Details are as follows.

First, the investment methods are different.

1 equity investment

Investors can directly invest monetary funds, intangible assets and other physical assets in the target company, and can also invest in equity by buying shares in the target company.

2 Debt investment

Investors' purchase of corporate bonds, financial bonds and government bonds with a maturity of more than one year is regarded as debt investment, not limited to enterprises.

Second, the investment period is different.

1 equity investment

Generally speaking, business activities are a long-term process, and equity investment usually lasts for more than one year, so as to achieve the purpose of participating in the company's business activities, and thus may obtain greater economic benefits. It is worth mentioning that during the investment period, the invested funds or assets can be withdrawn.

2 Debt investment

There are many kinds of bonds that can be invested, including short-term bonds, medium-term bonds, long-term bonds and perpetual bonds. The principal cannot be withdrawn until the invested bonds expire.

Third, the investment purpose is different.

1 equity investment

The direct purpose of equity investment is to participate in the operation of enterprises, affect the production and operation activities of enterprises, and thus obtain more economic benefits (more profits or dividends).

2 Debt investment

Bond investment can only obtain the bonds of the investment unit, that is, obtain interest at the agreed interest rate and recover the principal at maturity.

Legal basis: Article 5 of the equity investment project management system (1) conforms to the national and local development strategic planning and industrial policies, and conforms to the enterprise development strategic planning; (two) abide by the laws and regulations of China and the country (region) where the investment is located, and standardize the investment decision-making and approval procedures; (3) Insist on focusing on main business and strictly control non-main business investment; (four) the rational allocation of enterprise resources, promote the optimal combination of resource elements, pay attention to the comprehensive return on investment; (5) Fully predict investment risks and carefully control risks.

Article 20 of the Company Law stipulates that shareholders of a company who abuse the independent status of the company as a legal person and the limited liability of shareholders to evade debts and seriously damage the interests of the company's creditors shall be jointly and severally liable for the company's debts. Abuse of the independent status of a company as a legal person and the limited liability of shareholders includes: false capital contribution by shareholders, private division of company property with shareholders, abuse of control over the company, and "out-of-shell" operation of the company.