At the same time, the law stipulates that securities practitioners are allowed to buy the same fund. Why can't the same fund enter private placement? As long as it is the same fund, it can be stock, bond, mixed and monetary, excluding closed-end, LOF and ETF funds. However, China is a superpower with a long history of corruption and lax law enforcement.
It is difficult to legally protect the interests of public offering holders. One-to-many benefit transfer is an example. Some employees who are not allowed to buy stocks, such as fund managers, buy stocks behind the scenes. This may not be enjoyed by foreigners, or it may be that we are the superiority of socialism.
Extended data:
Combines the advantages of closed-end funds and open-end funds.
ETF, like the familiar closed-end fund, can be bought and sold on the exchange in the form of small "fund units". Similar to open-end funds, ETF allows investors to purchase and redeem continuously, but when ETF redeems, investors get a basket of stocks instead of cash, and they are allowed to purchase and redeem after reaching a certain scale.
Compared with closed-end funds, ETFs are listed on exchanges, just like stocks, which can be traded at any time in a day. The difference is that:
1 ①ETF is more transparent. Since investors can purchase/redeem continuously, the frequency of asking fund managers to announce their net worth and portfolio is also accelerated accordingly.
(2) Due to the existence of the continuous subscription/redemption mechanism, theoretically there will not be too much discount/premium between the net value of ETF and the market price.
Compared with open-end funds, ETF funds have two advantages:
First, ETF is listed on the exchange and can be traded at any time within one day, which is convenient for trading. Open-end funds can only be opened once a day, and investors only have one trading opportunity every day (that is, subscription and redemption);
Second, when the ETF is redeemed, it is to deliver a basket of stocks.
There is no need to keep cash, which is convenient for managers to operate and can improve the management efficiency of fund investment. Open-end funds often need to keep some cash for redemption. When investors of open-end funds redeem their fund shares, they often force fund managers to constantly adjust their investment portfolios, and the resulting taxes and losses of some investment opportunities are borne by those long-term investors who have not made redemption requests.
Baidu Encyclopedia-Trading Open Index Fund