What is an example of a mixed investment in China?
An example of mixed investments is when a trust company collects money from institutional investors and individuals, and provides loans and investments to various projects in exchange for the investees’ equity shares. The trust company usually does not have ownership of the investee’s net assets, nor does it engage in any of the voters or daily operations of the investee. A trust financing contract usually has provisions stipulating fixed annual returns and buy-back deals which require the investee to purchase the equity shares back from the trust company at a premium after a certain number of years.
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