2065438+On February 24th, 2003, the Fund Supervision Department of China Securities Regulatory Commission issued the Guidelines for Product Registration of Long and Short Graded Funds (hereinafter referred to as the Guidelines) to Shanghai and Shenzhen Stock Exchanges, Multi-local Securities Regulatory Bureaus and China Fund Industry Association, which stipulated the design principles, investment thresholds and leverage ratio of long and short graded funds. First, the risk is controllable and the leverage ratio of graded shares is reasonable; Second, it is highly transparent and easy for investors to understand; Third, there are appropriate arrangements for investors that meet the characteristics of products; The fourth is to fully reveal the risks of various shares of the fund. It is required that the long and short graded funds adopt the form of sponsored funds, and the sponsored funds shall not be less than 20 million yuan. It is stipulated that the absolute value of the initial share leverage of "multiple shares" and "empty shares" shall not exceed 2 times, and the absolute value of the maximum net leverage shall not exceed 6 times. The periodic conversion period cannot be less than 3 months. However, the threshold for participation is 500,000 yuan, and the threshold for arbitrage split and merger is 500,000 shares. It also stipulates that the parent fund obtained after irregular conversion will be redeemed automatically, rather than split automatically. The risk of long-short graded funds is not greater than that of traditional financing graded funds. Setting such a high threshold is not conducive to retail investors to participate in short selling. Compared with stock index futures and margin financing and securities lending, it has no competitive advantage, and there is a huge gap with the market expectation of "providing short-selling investment tools for retail investors", which has caused great controversy.

Long and short grading products were previously considered as investment tools for the majority of small and medium-sized retail investors to short A shares. CEIBS Fund Company reported the first long-short graded fund product to CSRC, and then many fund companies followed suit. By the end of May, there were 15 products, one of which was an index-type long-short graded fund, such as the China Europe CSI 300 Index long-short graded fund, and the other was a money fund, such as the long-short graded fund listed in the money market reported by Huaxia Fund Company. However, the above products are in the review stage after acceptance, and there has been no progress, and the specific product design scheme has not been made public. Insiders pointed out that the introduction of the "Guidelines" accelerated the listing of long-short graded funds. However, due to some differences between the guidelines and the plans previously reported by many companies, the product plans still need to be revised. "It should take several months to get out."