It's not a false contribution. China's "Company Law" does not restrict shareholders to contribute with their own funds. As long as the shareholders make full contributions in accordance with the articles of association, whether the shareholders' funds are their own funds, loans or other legal sources, they are in compliance with the law, and the borrowed funds are not false contributions. However, because the loan is made by individual shareholders, it should be repaid by shareholders, not by the company, otherwise it will infringe on the interests of other shareholders of the company, and persuading people will also be considered as an act of withdrawing capital contribution.

Relevant laws and regulations-legal website

Company Law of the People's Republic of China

Article 28 Shareholders shall pay their respective subscribed capital contributions in full and on time in accordance with the Articles of Association. Where shareholders make capital contributions in cash, they shall deposit their capital contributions in full into the account opened by the limited liability company in the bank; Where non-monetary property is used as capital contribution, the formalities for the transfer of property rights shall be handled according to law.

Where a shareholder fails to pay the capital contribution in accordance with the provisions of the preceding paragraph, he shall be liable for breach of contract to the shareholder who has paid the capital contribution in full and on time.