Published On: Thu, Oct 16th, 2014

SZSE Released Implmentation Rules On Trading, Subscription And Redemption Of Fund

Chen Dongzheng Chairman SZSE

Chen Dongzheng Chairman SZSE

Shenzhen Stock Exchange (SZSE) promulgated Shenzhen Stock Exchange Implementation Rules on Trading, Subscription and Redemption of Securities Invested Fund (hereinafter referred as Rules on Trading and Subscription of Fund), which systematically classified and integrated the existing rule on trading, subscription and redemption of fund, changing the situation of lack of system of rules on fund trading, subscription and redemption. This act, as an important measure of SZSE actively pushing forward service innovation, continuously improving the fundamental development, in implementation of the spirit of the Third Plenary Session of the 18th Central Committee of CPC and requirement of the New National Nine, is conducive for further advancing the development and innovation of exchange fund market and better serving the market participants.

Comparing with the existing rule system, Rules on Trading and Subscription of Fund primarily has the following amendment and supplement: firstly, the definition of four categories of listed funds, including ETF, LOF, classified fund and close-end fund, are explicitly defined, and ETF is expanded as non-index fund; secondly, relevant business scope of trading, subscription and redemption of monetary ETF is expanded so as to cater the demand of listing and trading of exchange traded monetary ETF; thirdly, the rules on block trading of fund unit is defined, and the regulation on the using of fund unit in case of fund block trading, bidding, subscription, redemption is specified. Fourthly, the principle regulation of protecting investors is added.

In recent years, with ‘forging fund supermarket’ as its goal, SZSE has promoted in a pro-active manner the development of listed fund market, which contains four categories of products, including LOF, ETF, classified fund and close-end fund, and which covers integrated fund product lines in domestics and overseas markets. As of September 30, 2014, there are 323 fund listed on SZSE, with their exchange net asset value being about 125.6 billion Yuan. Relevant principal from SZSE indicated that the promulgation and implementation of Rules on Trading and Subscription of Fund further improved the fundamental system of SZSE fund market, and was beneficial for the investors to understand the rules on the trading, subscription and redemption of fund systematically and comprehensively, and reserved space for the innovation of product and business of listed fund. For the next step, SZSE will further improve the function of fund trading platform, and give a full play to the pro-activeness of market participants, promoting the innovative development of fund market. SZSE will, firstly, optimize the fund trading mechanism and platform and improve the relevant matching system; secondly, develop the long-term mechanism of market training, enrich fund product system, and enhance the market liquidity; thirdly, promote the product innovation, launch monetary ETF as soon as possible, and propel the commodity futures ETF and cross-listing of fund in Shenzhen and Hong Kong markets, so as to cater the market development needs.

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