Article31 An FBIE may engage in the following businesses:
(1) It may make equity investments with all of its own capital through establishing new enterprises, or investing into an established enterprise, or accepting the stock equities transferred by the investors of an established enterprise, or through other means as permitted in the laws and regulations of the state;
(2) It may offer business-starting investment consultancy services;
(3) It may offer management consultancy to the invested enterprises;
(4) It may engage in other businesses as approved by the examination and approval organ. The capital of an FBIE may be largely used to make equity investments into its invested enterprise.

Article32 A business-starting enterprise shall not engage in the following activities:
(1) It shall not make investments into the areas in which foreign investments are prohibited by the state;
(2) It shall not make direct or indirect investments into the listed securities and bonds of an enterprise, but after the invested enterprise is listed, the shares held by the FBIE shall be an exception.
(3) It shall not make direct or indirect investments into real property not for its own use;
(4) It shall not make investments by way of loans;
(5) It shall not make investments by embezzling the capital not in its ownership;
(6) It shall not provide a loan or guaranty to others, but the bonds with a term of more than 1 year issued by its invested enterprise and the investments in the nature of bonds that may be converted into equity investments to the invested enterprise shall be excluded (this paragraph doesn't concern whether the invested enterprise is entitled to issue such bonds or not);
(7) It shall not engage in other activities as prohibited in the law and regulations and the contract of the FBIE.

Article33 The investors shall stipulate a term for foreign investments in the contract of the FBIE.

Article34 The incomes of an FBIE shall be generated largely from selling the stock equities it holds in the invested enterprise or from disposing of the stock equities by other means. When an FBIE sell the stock equities it holds in the invested enterprise or dispose of the stock equities by other means, it may, in accordance with the law, choose one of the following available methods of withdrawing:
(1) It may transfer part of or all of the stock equities it holds to other investors;
(2) It may sign an agreement of stock equity counter-purchase with the invested enterprise, which may counter-purchase the stock equities held by the business-starting investment enterprise under certain circumstances;
(3) Where the invested enterprise satisfies the conditions of listing as provided by laws and administrative regulations, it may apply for listing in the securities markets of home and abroad. In accordance with the law, the FBIE may transfer the shares it holds in the invested enterprise through the securities markets;
(4) The other methods that are allowed by the laws and administrative regulations of China. The concrete regulatory measures concerning the invested enterprise' counter-purchase of the stock equities held by the FBIE shall be separately formulated by the examination organ jointly with the registration organ.

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