The so-called fund raising period (also called fund issuance period) refers to the period from the date of announcement of the fund prospectus to the establishment of the fund.
1. Specific content
The purpose of fund-raising is to raise funds publicly. The whole process of fund raising includes four steps: application, examination and approval, sales and fund contract coming into effect.
First, the fund management company submits an application for issuance to the CSRC, and the CSRC makes a decision on whether or not to approve it within six months.
After the new fund raising application is approved, it should enter the fund share sale link within 6 months according to the regulations, and the raising period will begin accordingly. The raising period of new funds generally ranges from 1 to 3 months, and the longest period cannot exceed 3 months.
The share of the new fund is limited. If the fundraising is completed in advance, the fundraising period can be ended. But if it is larger than the established scale, the excess cannot be confirmed. If it fails to reach the established scale, the fund may face "dystocia" and eventually cannot be established.
After the end of the raising period, the fund sales share and raised funds meet the pre-application standards, and the fund management company can go through the filing procedures at the CSRC, and the fund contract can finally take effect.