Fund companies subscribe for their own funds and promote the market to subscribe for fund shares. Self-purchase generally occurs in the subscription period of the fund, that is, the period when the fund has just set up its share.
Securities investment fund management company (fund company) refers to an enterprise legal person established in China with the approval of China Securities Regulatory Commission and engaged in securities investment fund management business. The board of directors of the company is the highest authority of the fund company. The promoters of fund companies are institutions engaged in securities business, securities investment consulting, trust asset management or other financial asset management. People usually refer to funds mainly as securities investment funds.
In a narrow sense, fund companies only refer to fund management companies (Public Offering of Fund companies) that can engage in securities investment fund management business with the approval of the CSRC; Broadly speaking, fund companies are divided into Public Offering of Fund companies and private fund companies. Public Offering of Fund's business and personnel activities are supervised by the CSRC, and its employees belong to the fund industry; Private equity fund companies are not regulated (the new fund law may bring private equity funds under the supervision of the CSRC). From the organizational form, fund companies are divided into corporate fund companies and limited partnership fund companies. In practice, all Public Offering of Fund companies are corporate fund companies, and private fund companies adopt both corporate system and limited partnership system.
Securities investment funds (commonly known as funds) are products issued by fund companies. Among the links related to fund issuance, management, custody, registration and sales, those related to fund managers (fund companies) include fund issuance and management, registration and partial sales (direct sales). What needs to be emphasized here is that the fund property is independent of the inherent property of the fund manager. That is to say, on the one hand, the fund company shall not classify the fund property as its inherent property. When the fund company goes bankrupt or collects debts, the fund is not included; On the other hand, investors buying funds do not belong to buying assets of fund companies.