1. Large redemption: When investors collectively redeem a large number of fund shares, the fund company may suspend the redemption to protect the interests of other investors. This is to avoid the fund scale shrinking due to large redemption, which will affect the investment strategy and performance of the fund.
2. Abnormal market fluctuation: When the market fluctuates violently or abnormally, the fund company may suspend trading to prevent investors from making impulsive trading decisions when the market is unstable. In this case, the fund company will suspend trading and wait for the market to return to normal before trading again.
3. The stock of the fund's heavy position plummets: If a stock held by the fund's heavy position plummets, it may trigger panic redemption of investors. In order to protect the interests of funds and other investors, fund companies can suspend redemption in order to better manage and adjust the investment portfolio of funds.
4. Internal adjustment of the fund company: The fund company may suspend trading due to internal adjustment, merger or other reasons. In this case, the fund company will inform investors in advance and give corresponding explanations and treatments.
It should be noted that the suspension of fund trading does not mean that investors cannot do other operations, such as fixed investment and conversion. Investors can choose their own operation mode according to the announcement and relevant regulations of the fund company.
In short, the suspension of fund trading is a measure taken by fund companies to protect the interests of funds and investors, which usually occurs under certain circumstances or when the market fluctuates greatly. Investors should pay attention to the announcements and related information of fund companies in time when the trading of funds is suspended, and plan their investment strategies reasonably.