Fund liquidation refers to the realization of all fund assets and the distribution of income to holders. The liquidation time is stipulated in the fund contract when the fund is established. The holders' meeting may modify the fund contract and decide the liquidation time of the fund.
According to the relevant laws and regulations of China Fund, if the net asset value of the fund is less than 50 million yuan for 60 consecutive days, or the number of fund share holders is less than 200 for 60 consecutive days, the fund manager has the right to announce the termination of the fund after being approved by the China Securities Regulatory Commission.
During the Asian financial crisis, Hong Kong had to be liquidated because of too few assets. Due to the bearish market outlook and redemption of fund shares, many fund companies in Hong Kong closed some funds.
capital settlement
It is generally stipulated in foreign countries that capital settlement needs permission or filing with the competent authorities. For example, in Britain, after the liquidation of open-end funds, the issuance, sale, redemption and cancellation of shares will be stopped, and the registration of share transfer will no longer be handled. Without the approval of the directors, the registration of shareholder change may not be carried out.
In addition to liquidation interests, fund business will no longer be carried out. The fund manager shall announce the notice of starting liquidation and notify the shareholders in writing that liquidation has started.
From the practice of Merrill Lynch Investment Company in the United States, Merrill Lynch equity funds and convertible securities series funds can be suspended or merged in whole or in part under certain circumstances.
If the net asset value of all overseas shares of an investment company is less than US$ 25 million for more than 30 consecutive days, or the net asset value of overseas shares of a fund is less than US$ 6.5438+0.5 million, or the board of directors thinks that the company or related funds are affected by changes in the economic and political situation, the company can send a written notice to all shareholders or shareholders of a certain stock 654.38+0 months in advance when the board of directors thinks fit, so as to make the next pricing after the notice period ends.
The shares redeemed or merged are based on the net asset value on the above-mentioned pricing date.
If the merger or suspension of funds is due to changes in the economic and political situation, it must be approved by the shareholders of the relevant funds in advance. The approval was made at a similar shareholders' meeting held in an appropriate manner.