According to Article 5 of the Securities Investment Fund Law, the fund shares of open-end funds can be purchased or redeemed at the time and place agreed in the fund contract. The State Council is authorized to make other provisions on the specific measures for the subscription and redemption of funds with other modes of operation. Therefore, the subscription or redemption of fund shares mentioned in this chapter refers to the subscription or redemption of fund shares of open-end funds.

Subscription of fund shares means that investors apply to buy fund shares of open-end funds managed by fund managers according to the subscription price of fund shares.

Redemption of fund shares means that fund share holders require fund managers to buy back the fund shares of open-end funds held by them according to the redemption price of fund shares.

Handling the subscription and redemption of fund shares is one of the important responsibilities of fund managers of open-end funds. At the same time, fund managers, as professional financial institutions, should focus on the operation of fund assets in order to give full play to their advantages in expert financial management. In addition, although this law has strict requirements on fund managers' funds, business facilities and personnel, it requires a large number of talents and institutions, a strong sales network and a settlement system to purchase and redeem fund shares. In order to enable fund managers to concentrate on the operation of fund assets, expand the sales volume of fund shares and facilitate investors to purchase and redeem fund shares, fund managers can not only purchase and redeem some fund shares by themselves, but also entrust commercial banks, securities companies and other institutions to use their business networks to purchase and redeem fund shares. If the fund manager entrusts others to purchase and redeem the fund shares on his behalf, he shall sign an agency agreement with this institution, which shall be reviewed and confirmed by the the State Council Securities Regulatory Authority. An institution applying for subscription and redemption of fund shares shall meet the following conditions: there is no department specializing in subscription and redemption of fund shares; There are enough full-time personnel who have obtained the qualification of fund practice; Having a convenient and effective business network; Having safe and efficient technical facilities for fund share subscription and redemption; Other conditions stipulated by the securities regulatory authority of the State Council.

Two. Registration of fund shares The registration of fund shares refers to the registration of fund share holders and fund share holders' changes in the amount of fund shares due to the subscription, purchase and redemption of fund shares, as well as the registration of fund share holders' rights and interests due to fund dividends. In order to enable fund managers to focus on the operation of fund assets, expand the number of fund shares sold and facilitate investors to register fund shares, fund managers can not only register fund shares themselves, but also entrust commercial banks, registration and settlement enterprises and other institutions to register fund shares by using their business networks. Where a fund manager entrusts others to handle the registration of fund shares on his behalf, he shall sign an agency agreement with this institution, which shall be examined and confirmed by the the State Council Securities Regulatory Authority. The urgent duties of the institution entrusted by the fund manager to handle the fund share registration business are: to establish and manage the investor's fund share account; Responsible for the registration of fund shares; Fund transaction confirmation; Dividend distribution by agents; Establish and keep a register of fund share holders; Other duties stipulated in the registered agency agreement.