What is corporate online banking and what is cash management?
Corporate online banking is an online banking service developed by banks for corporate users. Compared with personal online banking, corporate online banking has higher security levels, more enterprise-focused features, and more.
Cash management
Cash-management The socialist country controls and manages the amount and scope of cash used by all enterprises, institutions, agencies, groups and other units. Its purpose is to ensure that currency issuance power is concentrated in the central government, to regulate currency circulation in a planned manner, to save cash use, and to stabilize market prices. In China, the implementation of cash management, combined with the implementation of other relevant national regulations on credit and settlement, can make the People's Bank of China the credit center, settlement center and cash cashier center of the national economy, giving full play to the bank's supervisory role in various departments of the national economy. It is of great significance to prevent and crack down on corruption, theft and speculation by illegal elements, and to safeguard the socialist economic construction. China's cash management began with the "Decision on Implementing Cash Management in State Agencies" promulgated by the Government Affairs Council on April 7, 1950. On November 28, 1977, the State Council promulgated the "Decision on Implementing Cash Management", which is the basis of China's cash management system. The main contents are: ① All cash in each unit, except for the approved cash inventory limit, must be deposited in the bank. Economic transactions between each unit must be settled through bank transfers. ② The cash limit of each unit's inventory is generally determined based on the unit's daily sporadic cash expenditure needs for three days. For units that are far away from the bank and have inconvenient transportation, the limit can be appropriately relaxed, but it shall not exceed 15 days of daily expenses at most. ③The scope of cash use by each unit: payment of employee wages, allowances, welfare fees, and retirement pensions; payment of various pensions, student grants, and funeral subsidies; payment of individual labor remuneration to urban and rural residents; payment of travel expenses for business travelers, etc. ④ When purchasing from other places, each unit must use exchange or other forms of settlement and is not allowed to bring its own cash. ⑤ The cash receipts of each unit should be deposited in the bank in a timely manner. Cash for sporadic expenses can be paid from the unit's cash inventory limit. All other expenditures must be withdrawn from the bank where the account is opened and cannot be paid directly from the cash received by the unit. ⑥ Units with large cash receipts and expenditures must prepare cash receipts and expenditure plans and use cash within the approved range. In order to strengthen cash management, in accordance with the principle of separate management of accounts and money, cashiers are not allowed to take charge of any account books that are closely related to cash. When accounting personnel supervise the production of cash receipts and payment accounting orders, they must strictly review relevant vouchers and adhere to the cash management system and financial management system. Cash management is a mature financial service in the international banking industry. After more than 30 years of development, it has become one of the pillar intermediary businesses of European and American banks for high-quality enterprises. Since Huaqi Bank first brought corporate cash management products to China in 1999, almost all national commercial banks in China have launched their own cash management services. In the banking industry, cash management has become an important competitive tool for banks to compete for high-end corporate and institutional customers. In recent years, the cash management business has expanded rapidly in China. Almost all national commercial banks have launched their own brand of cash management products. Industrial and Commercial Bank of China has Caizhi Account, CITIC Bank has Caizhi Synergy, and China Merchants Bank has BitGold. For cash management, Shanghai Pudong Development Bank has Pudong Development Bank, Shanghai Bank of Communications has Yuntong account, and Hua Xia Bank has Cash Shinkansen. For banks, cash management services are no longer simple collection and payment services. Instead, banks customize personalized cash management solutions for customers, provide comprehensive services, and assist customers in overall planning of cash inflows, outflows, and stocks. , on the basis of ensuring liquidity, achieving financial services that maximize customer benefits. In the domestic cash management market, each bank has its own brand. For domestic financial institutions, ICBC started early, and in 2002 it promoted a pilot program of cash management business across the country. At present, ICBC has launched several major categories of cash management services, including collection, payment, account management and information services, and liquidity position management. CITIC Bank Cash Management is a series of products provided by CITIC Bank to help customers achieve overall planning and management of their cash, bank deposits and currency equivalents in a broad sense, aiming to help customers obtain and maintain optimal cash flow. CITIC's cash management mainly includes account information management, collection and payment management, liquidity management, short-term investment management and capital risk management. The foreign currency cash pool business that China Merchants Bank previously cooperated with GE is well known in the industry, and China Merchants Bank also used GE's case to establish its cash management brand. China Merchants Bank was recently rated as the "Best Cash Management Bank in China" by Asia Money. The bank is the only domestic commercial bank to be rated the best and has won the award for the second consecutive time. China Merchants Bank is a large group enterprise that applies cash liquidity management products such as nominal fund management, local and foreign currency cash pools, group agreement transfers, group fund balance management, and group treasury management platforms. The newly launched corporate cash management solution of Shanghai Pudong Development Bank is an overall service solution that integrates collection, payment, account fund management and information services for customers. This solution is based on Shanghai Pudong Development Bank's integrated comprehensive business processing platform and uses newer, more convenient and more scientific financial tools to help enterprises effectively operate funds, continuously reduce costs and increase profits.
At present, the enterprise cash management solution has launched seven special cash management products: "Zhongjun Account", "Group Win", "Huishida", "Pay Easy", "Liduoduo", "Online Banking" and "Timely Words" , breaking through the constraints of homogeneity of banking products and highlighting the service advantages of personalization, differentiation and value-added. Bank of Communications Yuntong Account is its cash management service sub-brand. Yuntong Account integrates account management, cash management, and bill management. Through special functions such as combined accounts, cash pools, and bill pools, it provides customers with one-stop, high-quality, personalized fund management services, and assists customers in group finance. Optimize processes, improve efficiency, and maximize corporate value in areas such as management, working capital arrangements, and centralized bill management. "Cash Shinkansen" is the exclusive brand of Hua Xia Bank's cash management business, including "Collective Express", "Collective Express", "E-Commerce Express", "Express Express" and "Direct Connection Express" ", "Overdraft Express", "Yinguan Express" and other seven major express lines. Cash management products from major domestic banks are springing up like mushrooms after a rain. In addition, in order to strengthen the competitiveness and product advantages of their own products, domestic banks have also cooperated with foreign banks. It hopes to use the product and technological advantages of foreign banks, combined with its own customer resources and regional advantages, to better enhance the brand image of its own cash management product standards.
Edit this paragraph on the principles of cash management
Cash in the accounting category is also called cash on hand, which refers to the cash stored in the enterprise and kept by cashiers, including RMB and RMB in stock. Various foreign currencies. Cash is the most liquid type of monetary fund. It can be used at any time to purchase needed supplies, pay daily sporadic expenses, repay debts, etc. Here, it is important to point out that the word "cash", according to international practice, refers to bills that can be used as a means of circulation and payment at any time. Regardless of whether they are legal tender or credit bills, as long as they have the ability to purchase or pay, they can be regarded as cash. Therefore, cash can be divided into broad and narrow senses in theory. Cash in the narrow sense refers to the coins and banknotes owned by the enterprise, that is, the cash in stock kept by the enterprise's cashier for sporadic business expenses. Cash in a broad sense should include cash on hand and various bank deposits, circulating securities, etc. that are regarded as cash. Our country adopts a narrow concept of cash. Cash management is the management of all aspects of cash collection, payment, and deposit. According to the "Interim Regulations on Cash Management", the basic principles of cash management are: First, the cash inventory of the account opening unit shall be subject to quota management. Second, you are not allowed to withdraw cash without authorization. Paying cash easily disrupts the cash receipts and payments channels, and is not conducive to the bank's effective supervision and management of the company's cash. Third, cash generated by enterprises is not allowed to be stored as savings deposits. Fourth, the cash received should be deposited in the bank in a timely manner. The enterprise's cash receipts should be deposited in the bank where the account is opened on the same day. If there is any difficulty, the bank where the account is opened should determine the deposit time. Fifth, cash must be used strictly in accordance with the expenditure range stipulated by the state. If the settlement amount exceeds the starting point, cash shall not be used. Sixth, it is not allowed to make up the purpose to obtain cash. If an enterprise needs cash within the scope and limit of cash usage stipulated by the state, it should withdraw it from the bank where the account is opened. The purpose should be stated when withdrawing, and it is not allowed to fabricate the purpose to obtain cash. Seventh, companies are not allowed to borrow cash from each other. [1] What is inter-bank cash management
It is a cash management system implemented between different commercial banks. Each commercial bank has a dedicated department for management and must report inter-bank capital flows to the People's Bank of China on a daily basis. What is "inadequate cash management"?
There are rules and regulations that are not followed, cash management is not strict and in place, and the problem of cash payment beyond the scope and limit is common. One-sided emphasis on the objective needs of work is essentially a lack of understanding and inadequate understanding of cash management, and even for the convenience of personal work, resulting in a large number of large-scale cash payments for economic and business transactions. At the same time, the financial person in charge has a weak sense of supervision or due to personal emotions, never counts the cash at the cashier or the inventory is just a formality, resulting in frequent and widespread problems such as short payment of cash in stock, mixed use of public and private funds, and IOUs being deposited into the treasury.
This is why cash management is not in place. Please ask for the specific management system of corporate online banking.
In order to strengthen the management of the group company’s bank account online payment business and in conjunction with the company’s financial management system requirements, these measures are specially formulated. .
Chapter 1 Activation of Online Banking Functions
To carry out business, each group company needs to activate bank account online inquiry and payment functions. The financial department of each company shall submit a written application. After approval by the general manager, the financial department of the group is in charge of the audit. After the general manager of the group signs and approves, the company's financial department will assign a person to handle the process in the group's designated bank settlement account. No other department personnel are allowed to handle the same.
Chapter 2: Storage of keys and passwords related to online banking
1. In principle, online banking accounts are required to have the triple security of login password, digital certificate (encrypted USB disk) and SMS reminder. Protection function to ensure the safety of account funds.
2. Three-level management of online banking keys.
Based on the principle of high efficiency and strengthening fund security audit, each member enterprise that has opened online banking for payment must be managed according to three-level permissions, namely cashier document preparation, accounting review, and supervisor audit mode.
(1) Online banking key with basic permissions.
Bank teller: Equipped with an online banking key (setting password) with basic permissions. With this online banking key, you can check your account status online at any time, including detailed information such as current and historical transaction details, time-point balances, etc., and you can submit bank income and payment settlement instructions.
(2) Online banking key with review permission.
First-level review administrator: equipped with an online banking key (setting password) with review permission. The settlement administrator must review the online banking receipt and payment settlement instructions and query the online banking receipt and payment records to achieve effective review and supervision.
(3) Online banking key with audit permission.
Financial person in charge: Online banking key (set password) equipped with audit permission. All payment instructions in online banking must be approved and authorized before they can take effect. That is, the final purpose of preventing financial risks is achieved through secondary audit.
3. The login password will be kept by the company’s financial manager; the digital certificate (encrypted USB flash drive) will be kept by the cashier of the company’s finance department; text message reminders must be reserved at the group’s financial management center Manager’s mobile phone number.
4. Online banking passwords should be changed regularly.
5. You are not allowed to download certificates on any computer other than the company’s internal financial computer or use the company’s online banking to handle business.
Chapter 3 Process of Online Banking Payment Business
1. When the Finance Department uses online banking to handle fund payment business, the payment must be completed by the person in charge in accordance with the company's fund approval procedures. The application procedures can be forwarded to the cashier of the Finance Department for processing. 2. The cashier must carefully check the original bills of the payment plan to prevent payments with incomplete payment procedures, and preliminarily check that the payment application is correct; the accountant shall check the payee unit, account number, account bank, and payment amount in accordance with the payment plan. Conduct audits and authorize review instructions for online banking services.
3. The cashier enters the transfer information one by one according to the content of the payment application, confirms it is correct, and transfers the money; after success, the payment voucher is printed.
4. The financial supervisor must supervise the entire process of the cashier's transfer until the transfer is completed and the person exits the online banking system.
5. After the payment is completed, the cashier stamps the "paid" seal on the payment application form, and signs the payment form with the financial supervisor at the same time, which can be used as the basis for entry into the account. For online banking documents that should be issued by a bank, the original documents issued by the bank where the account is opened and stamped with the bank's business seal must be used as the accounting voucher.
6. Handling of abnormal business during online banking operations.
When using online banking for settlement operations, in addition to establishing a secondary review mechanism, the principle of prudence must also be emphasized. If during normal operations, suspicious instructions appear in the payment business due to network, system or other reasons, you should immediately consult and confirm with the handling bank of online banking, including the cause of the problem, solution measures, time required, etc. Do not operate it again to prevent repeated payments for a single transaction. After contacting the bank and confirming that the business is indeed unpaid, and the pending instructions for processing are eliminated, the business can be replenished and processed according to the secondary audit method.
7. The cashier should check the funds allocated every day one by one and confirm whether the transaction is successful
. It is necessary to make full use of the online banking inquiry function to master the fund balance of the bank account, and to make timely reconciliations to achieve daily and monthly settlements.
8. Contact the bank frequently to keep abreast of the latest trends in online banking, keep records of online banking failures, and report them to the business manager in a timely manner to avoid business disruption and economic losses.
9. Handover: If an online banking operator asks for leave due to special reasons, he must authorize and hand over the leave in writing, and report it to the Group Financial Management Center at the same time. If any problems arise, the authorizer shall be responsible. The online banking operators of each company are not allowed to be changed without the consent of the head of the group finance department.
Chapter 4 Daily Management of Online Banking Business
1. Computers with online banking installed are special computers and are strictly prohibited for use by non-online banking operators. Bank cashiers are responsible for daily management of online banking computers. and maintenance.
2. Business scope: According to business needs, online banking of each unit is currently limited to the following businesses:
(1) Account inquiry: inquiry of account status and balance, historical transaction details Inquiries, bill inquiries, etc.
(2) Bank receipts and payments settlement: internal transfers, payment of goods, salary payment, self-service payment, etc.
(3) Account status management: temporary account loss report, account password modification, etc.
3. It is strictly prohibited to use the company’s online banking account to borrow or misappropriate personal funds without permission.
4. The cashier will deposit the full amount of cash into the relevant bank account on the weekly supplier payment day or the day before employee payday, and make the transfer in a timely manner the next day.
5. After the end of each month and before the 3rd of the following month, the cashier prints the monthly online banking transaction details. The financial supervisor is responsible for checking the relevant journals one by one. After confirming that they are correct, he will sign on the bill for confirmation as the accountant. The files are saved together.
6. Online banking operators must exit the online banking system when leaving their posts, take out the key from the card reader, and keep it properly.
7. The online banking keys under the jurisdiction of bank tellers and financial directors should be managed as financial seals, and their passwords and online banking keys should be kept separately. Regardless of daily temporary work handover or job rotation, the password must be changed in time. Before leaving get off work every day, the online banking key must be placed in the safe
memory.
8. Audit the operation and custody of online banking from time to time to ensure the safety of online banking business.
9. Those who cause financial losses to the company due to improper operations will be punished in accordance with the company's "Regulations on Penalties for Employees Violating Violations of Violations and Disciplines" and relevant laws and regulations.
Chapter 5 Supplementary Provisions
1. The Group Financial Management Center is responsible for the interpretation of these Measures, and any outstanding matters shall be handled in accordance with the requirements of the bank where the account is opened.
2. These Measures shall come into effect from the date of issuance. How to withdraw expired money from corporate online banking
What does cash management bank-enterprise interconnection mean? ICBC's fee deduction is said to be a cash management bank-enterprise interconnection
It is a cash management platform built by banks and enterprises. It is a transaction management platform between banks and enterprises on how to manage cash and how to provide services. How to activate corporate online banking
If it is China Merchants Bank corporate online banking, please open the web link and follow the prompts. What is the meaning of cash management in the flow of bank enterprise interconnection
1. Enterprise management can enhance the operational efficiency of the enterprise;
2. It allows the enterprise to have a clear development direction;
3. It can enable every employee to give full play to their potential;
4. It can make the company's finances clear, the capital structure is reasonable, and investment and financing are appropriate;
5. It can Provide customers with satisfactory products and services;
6. It can better establish the corporate image and make more practical contributions to society.
The ultimate goal is to improve the economic benefits of the enterprise. What are the benefits of activating corporate online banking?
Activating corporate online banking provides the following services:
? Account management
? Collection business
? Payment business
?Group financial management
?Letter of credit business
?Loan business
?Investment and financial management
?Funds
?Treasury bonds
?Contract deposits
?Notice deposits
?Agent banks
?Customers Service
Role: The development of information technology provides new practical ideas for commercial banks to expand financial service areas, improve service quality, reduce service costs, and strengthen internal management. Under this new situation, in addition to taking on the operational functions of traditional online financial services, online corporate banks will also become the link between banks and enterprises in the new economic model. Its new services and operating models will also help banks to enhance their capital. And cost efficiency plays a more important role in the second transformation strategy as the core. What is an open-end cash management project?
Open-end funds include general open-end funds and special open-end funds. The special open-end fund is LOF, the full name in English is "Listed Open-Ended Fund" or "open-end funds", and in Chinese it is called "listed open-end fund". That is to say, after the issuance of a listed open-end fund, investors can either subscribe and redeem fund shares at designated outlets, or buy and sell the fund on the exchange. Open-end funds are also called mutual funds abroad. They and closed-end funds constitute two modes of operation of funds. An open-end fund refers to a fund in which the total size of fund shares is not fixed when the fund sponsor establishes the fund. Fund shares can be sold to investors at any time depending on the needs of investors, and outstanding fund shares can be redeemed at the request of investors. How the fund operates. Investors can either purchase funds through fund sales agencies, thereby increasing fund assets and scale, or they can sell their fund shares to the fund and withdraw cash, thereby reducing fund assets and scale accordingly. Open-end funds are one of the basic forms of fund operations around the world. Fund management companies can sell new fund shares to investors at any time, and also need to buy back the fund shares they hold at any time at the request of investors. At present, open-end funds have become the mainstream variety in the international fund market. More than 90% of the fund markets in the United States, the United Kingdom, Hong Kong and Taiwan are open-end funds. Compared with closed-end funds, open-end funds have greater advantages in terms of incentive and restraint mechanisms, liquidity, transparency and investment convenience: strong market selectivity. If the fund performance is excellent, the inflow of funds from investors purchasing the fund will lead to Assets increase. And if the fund does not perform well, investors will withdraw their funds by redeeming the fund, resulting in a reduction in fund assets. Since the overall operating costs of larger funds are no higher than those of small funds, large funds have better performance, more people are willing to buy them, and the scale is larger.
This mechanism of survival of the fittest forms a direct incentive constraint for fund managers, fully reflecting good market selection; with good liquidity, fund managers must maintain sufficient liquidity of fund assets to cope with possible redemptions without concentration. Holding a large amount of assets that are difficult to liquidate reduces the liquidity risk of the fund; in addition to high transparency and disclosure of necessary information, open-end funds generally publish the net asset value every day, accurately reflecting the fund manager's operation in the market at any time. The ability to control funds is particularly attractive to small investors who lack ability, funds and experience; it is convenient for investors to subscribe and redeem funds at any time at various sales venues. A good incentive and restraint mechanism also prompts fund managers to pay more attention to integrity and reputation, emphasizing medium- and long-term, stable, high-performance investment strategies and excellent customer service. As an innovative financial product, the launch of open-end funds can better mobilize investors' investment enthusiasm, and sales channels include bank networks, which can attract some new savings funds to enter the securities market, improve the investor structure, and play a stabilizing role. and the role of developing markets. [Edit this paragraph] Relationship Open-end funds and closed-end funds constitute the two basic modes of operation of funds. Open-end funds refer to investment funds whose fund size is not fixed but can issue new shares or be redeemed by investors at any time based on market supply and demand. Closed-end funds, relative to open-end funds, refer to investment funds whose fund size is determined before issuance and remains fixed after issuance and within a specified period. Open-end funds are not listed for trading. They can be sold directly by fund companies; they can also be sold by agents of fund companies, such as commercial banks or securities sales departments; they can also be subscribed and redeemed online through the website of the fund company. Moreover, the fees can be discounted, and the scale is not fixed. Fund units can be sold to investors at any time or bought back at the request of investors. Closed-end funds have a fixed duration, during which the fund size is fixed, and are generally traded on securities exchanges. The exchange is listed and traded, and investors buy and sell fund units through the secondary market. Closed-end funds are not allowed to accept new investments or offers of shares for a period of time until a new round of opening. When it opens, you can decide how much you offer or re-invest. New people can also invest at this time. The general opening time is 1 week and the closing time is 1 year. [Edit this paragraph] Differences in fund size The variability of fund size is different. Closed-end funds have a clear duration (in my country: no less than 5 years), and the issued fund units cannot be redeemed during this period. Although such funds can be expanded under special circumstances, the expansion should meet strict legal conditions. Therefore, under normal circumstances, the fund size is fixed. The fund shares issued by open-end funds are redeemable, and investors can also subscribe for fund shares at will during the duration of the fund, resulting in the total funds of the fund constantly changing every day. In other words, it is always "open". This is the fundamental difference between closed-end funds and open-end funds. Fund Shares Fund shares are bought and sold in different ways. When a closed-end fund is initiated and established, investors can subscribe to the fund management company or sales agency; when the closed-end fund is listed for trading, investors can entrust securities firms to buy and sell at the market price on the stock exchange. When investors invest in open-end funds, they can subscribe or redeem from fund management companies or sales agencies at any time. Fund shares The buying and selling prices of fund shares are formed in different ways. Since closed-end funds are listed on exchanges, their buying and selling prices are greatly affected by market supply and demand. When the market supply exceeds demand, the buying and selling price of fund shares may be higher than the net asset value of each fund share. At this time, the fund assets owned by investors will increase; when the market supply exceeds demand, the fund price may be lower than the net asset value of each fund share. Net Asset Value. The buying and selling price of open-end funds is calculated based on the net asset value of fund shares, which can directly reflect the level of the net asset value of fund shares. In terms of fund trading fees, when investors buy and sell closed-end funds, just like buying and selling listed stocks, they also have to pay a certain proportion of securities transaction taxes and handling fees in addition to the price; while investors in open-end funds need to pay related fees (such as initial subscription fee, redemption fee) are included in the fund price. Generally speaking, the fees for buying and selling closed-end funds are higher than those for open-end funds. Investment Strategies Funds vary in their investment strategies. Since closed-end funds cannot be redeemed at any time, all funds raised can be used for investment, so that fund management companies can formulate long-term investment strategies and achieve long-term operating performance. Open-end funds must retain a portion of cash so that investors can redeem them at any time, and cannot all be used for long-term investment. Generally invest in assets with strong liquidity. Fixed size The fund size is fixed or not. Closed-end funds have a fixed duration, during which the fund size is fixed. Open-end funds have no fixed duration, and their scale can change at any time due to investors' subscriptions and redemptions; Listed and traded No listed and traded.
Closed-end funds are listed and traded on securities exchanges, while open-end funds are sold and redeemed at the business premises of the sales agency and are not listed and traded; the price determines the subscription and redemption prices of open-end funds based on the daily published net asset value of the fund share plus , minus a certain handling fee calculation, can clearly reflect its investment value, while the transaction price of closed-end funds is mainly affected by the market supply and demand for that specific fund share; management requires open-end funds to face redemption pressure at any time, and must pay more attention to Risk management such as liquidity requires fund managers to have a higher level of investment management. The development process of world investment funds basically follows the development law from closed to open. [Edit this paragraph] Generally speaking, open-end funds are suitable for four types of investors: (1) Investors who make securities investment as a side job and do not have time to care about it. Most participants in the securities market have their own main interests. Work, the opening time of securities trading is also the busiest time for everyone's work. When purchasing funds, you can leave it to a professional fund company to manage, and you can sit back and enjoy the profits. (2) Investors who intend to invest in securities but lack securities knowledge. Due to lack of securities knowledge, most investors are unable to conduct in-depth and detailed research on the securities market and listed companies, making investment blind. It is better to entrust a professional Fund management company operations. (3) Securities investors with low risk tolerance. Most of the current active investors in the securities market are small investors. If their funds are concentrated in purchasing one or two stocks, the risk will be too concentrated. If the investment is too diversified, the risk will be too high. If too much energy is involved, investment costs will rise, and the gains outweigh the losses. Funds aggregate small amounts of funds into large amounts of funds, which can be used for portfolio investment in a leisurely manner, which not only disperses risks but also facilitates management. (4) Investors who expect to obtain relatively long-term stable returns and do not pursue sudden wealth. Different funds have different investment styles, but they all promote long-term rational investment. If you pursue excess profits, you have to take double the risks. In this securities market, funds represent the mainstream of institutional investors. The return on investment is not the highest, but it will be relatively long-term and stable. Calculation of open-end fund subscription/subscription and redemption prices Open-end fund subscription and redemption prices are calculated based on the net asset value (NAV) of the unit fund.
The net asset value of a unit fund is the net value of the fund assets represented by each fund unit. The calculation formula is as follows: Net asset value of a unit fund = (total assets - total liabilities) / total number of fund units Subscription example: An investor has 1 million yuan to spend To subscribe to an open-end fund, assuming that the subscription rate is 1% and the face value of the fund share is 1 yuan, then the subscription fee = 1 million yuan x 1% = 10,000 yuan. The net subscription amount = 1 million yuan - 10,000 yuan = 990,000 Yuan subscription share = 990,000 yuan ÷ 1.00 yuan = 990,000 subscriptions Example: An investor has 1 million yuan to subscribe for an open-end fund. Assume that the subscription rate is 2% and the net value of the unit fund is 1.5 yuan, then the subscription Fee = 1 million yuan 1 million fund units, assuming the redemption rate is 1% and the net value of the unit fund is 1.5 yuan, then the redemption price = 1.5 yuan x (1-1%) = 1.485 yuan Redemption amount = 1 million x 1.485 = 148.5 Ten thousand yuan