When a fund is established, all subscription funds received are deposited in a custodian bank.

Since fund companies are only responsible for the investment and use of fund assets, fund companies require funds to be transferred through a custodian bank when using funds, and funds can only be transferred to fixed investment accounts.

When a fund company sells stocks, bonds and other assets, all the proceeds are transferred to the corresponding investment account. The funds in the investment account can only be used to buy and sell stocks, bonds or be transferred to the custody account of the fund custody bank.

It can be seen that the asset transfer process of the fund can be said to be watertight.

At the same time, the fund must publish quarterly reports every quarter, and must conduct annual report audits and publish annual reports.

In terms of information disclosure, it can be said that a fund is equivalent to a listed company.

Fund companies are also subject to supervision by the China Securities Regulatory Commission.