Fund companies can use their own funds to redeem the funds they manage. Usually, when the stocks held by its funds are undervalued by the market, the company's fund performance is poor, and the holders redeem them in large quantities, in order to stabilize the fund's cash position and appease investors, the fund company will use its own funds to buy its funds to show its confidence in its funds. Once the market improves, in view of the recovery of holders' confidence, the cash position of the fund is abundant, and the funds invested in the early stage have been reduced.

To sum up, there are generally two reasons for fund companies to redeem funds. First, after the completion of the capital task, the company needs to recover it and invest it in projects that are in urgent need of funds;

Second, the fund company is not optimistic about the market outlook, thinking that it is time to launch, and chooses to realize it in order to keep the existing income.

Usually, the redemption of funds by fund companies is the result of comprehensive consideration. Even if he is not optimistic about the market outlook, he will not openly admit it, but will make excuses. In fact, think about it, if the fund is rising well, why should it be redeemed? Can't you get a loan if you are short of money?

This is also the fundamental reason why fund companies (especially powerful funds like Huaxia) have an impact on the broader market.