Fund conversion refers to adjusting the total amount of fund shares according to a certain proportion under the premise that the net asset value of the fund remains unchanged, so as to reduce the net asset value of the fund unit accordingly. The purpose of fund conversion is only to restore leverage and restore the leverage charm of graded funds. If there is no conversion, the leverage of graded funds will become larger or smaller. However, the significance of stock conversion is not only to restore leverage. In many cases, conversion is also a mechanism to cash in earnings and protect A-share holders.