Yes, but there is a certain financial risk in converting shareholder loans into investment funds. If the company's production and operation are already difficult, and the expected income cannot be realized, then converting the loan into investment funds will cause the loan to be unrecoverable. This situation is more common, because the loan and investment funds are two different attributes, and careless investment will lead to the inability to generate income.
Legal objectivity:
Article 667 of the Civil Law of People's Republic of China (PRC) is a loan contract in which the borrower borrows money from the lender, repays the loan at maturity and pays interest. Article 668 of the Civil Code of People's Republic of China (PRC) A loan contract shall be in written form, unless otherwise agreed between natural persons. The contents of a loan contract generally include terms such as loan type, currency, purpose, amount, interest rate, term and repayment method. Article 669 of the Civil Code of People's Republic of China (PRC) concludes a loan contract, and the borrower shall provide the true information about the business activities and financial status related to the loan according to the requirements of the lender. Article 10 of the Provisions of the Supreme People's Court on Several Issues Concerning the Application of Laws in the Trial of Private Lending Cases, except for the cases stipulated in Articles 146, 153 and 154 of the Civil Code and Article 13 of these Provisions, the people's courts shall support private lending contracts concluded between legal persons, unincorporated organizations and legal persons due to the needs of production and operation.