1, Paragraph 2 and Paragraph 4 of Article 5 of the Fund Law also clearly stipulates that "the fund property is independent of the inherent property of the fund manager and fund custodian, and if the fund manager and fund custodian are liquidated due to legal dissolution, cancellation or bankruptcy, the fund property does not belong to their liquidation property."
2. From a legal point of view, when investors buy fund products, the funds invested belong to the property of the investors rather than the property of the fund company. Fund companies only have the right to manage these funds and have no ownership. Therefore, if the fund company goes bankrupt unfortunately, the fund assets purchased by investors cannot be used to repay the debt of the fund company itself.
3. If the fund company really goes bankrupt and the fund it manages does not meet the liquidation conditions, the CSRC will coordinate with it, and the fund holder will decide to merge or take over the management of other fund companies. If a new fund company cannot be found to take over within six months, it shall be liquidated according to the net value on the day when the original fund company announced the closure, and the funds shall be returned to the investors.
4. According to the regulations of China Securities Regulatory Commission, fund companies only have the right to manage funds, that is to say, they can only make investment instructions for funds, and the fund funds are in the accounts specially set up by third-party custodian financial institutions (banks or securities companies), and the transfer of funds is the responsibility of the custodian financial institutions, and fund companies cannot handle funds. When the customer redeems, the funds also return to the trust account of the financial institution, and then the financial institution transfers them to the customer's bank card. The whole fund operation process is closed-loop, and only the clients themselves and the entrusted financial institutions can handle the fund. Securities private equity funds invest in standardized financial assets of the exchange, such as stocks and commodity futures, and the asset side is closed, so there is no risk of funds being misappropriated from the asset side.