Equity investment is a common way used by western investment institutions, and it is often aimed at emerging markets such as developing countries. For example, now that the China market is booming, I am eager to get a share of the listing, but there is no strong financial support. You pay for my listing, and once you help me successfully raise more listing funds, or I get broader development, I will give you a dividend allotment. So in general, the profit of equity investment is considerable, but the risk is also very great.
Rmb equity investment fund can be understood as the establishment of RMB-type funds (equity investment requires sufficient funds) for equity investment to obtain considerable income.
The central bank now encourages the launch of RMB equity funds, hoping that there will be more private equity funds to expand the number of listed companies, because now funds are pouring into the stock market, but there are not many listed companies to choose from, which leads to high stock prices of some listed companies with poor returns. I feel that a narrow estuary will let a lot of water pass through, which will be fierce and rough. Now, by increasing the number of listed companies, the flowing water will be calm and slow, which is beneficial to the stable development of China stock market.