Article 1 This Law is formulated for the purpose of regulating the activities of securities investment funds, protecting the legitimate rights and interests of investors and relevant parties, and promoting the healthy development of securities investment funds and the securities market.

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Article 3 The rights and obligations of fund managers, fund custodians and fund share holders shall be stipulated in the fund contract in accordance with this Law.

Fund managers and fund custodians shall perform their fiduciary duties in accordance with this Law and the provisions of fund contracts. Fund share holders enjoy income and bear risks according to their fund shares.

Article 4 The activities of securities investment funds shall follow the principles of voluntariness, fairness, honesty and credibility, and shall not harm the national and social public interests.

Article 5 A fund contract shall stipulate the mode of fund operation. The fund operation mode can be closed, open or other ways.

Closed-end fund (hereinafter referred to as closed-end fund) refers to a fund with a fixed total fund share approved within the term of the fund contract, and the fund share can be traded on a legally established stock exchange, but the fund share holder may not apply for redemption.

An open-ended fund (hereinafter referred to as an open-ended fund) refers to a fund whose total share is not fixed and can be purchased or redeemed at the time and place agreed in the fund contract.

Measures for the sale, trading, subscription and redemption of fund shares of funds with other modes of operation shall be formulated separately by the State Council.

Article 6 Fund property is independent of the inherent property of fund managers and fund custodians. Fund managers and fund custodians may not classify fund property as their inherent property.

Property and income obtained by fund managers and fund custodians due to the management and use of fund property or other circumstances shall be classified as fund property.

If a fund manager or fund custodian is liquidated due to dissolution, cancellation or bankruptcy according to law, the fund property does not belong to its liquidation property.

Article 7 The creditor's rights of the fund property shall not be offset against the debts of the inherent property of the fund manager and fund custodian; Creditor's rights and debts of different fund properties shall not offset each other.

Article 8 The debts that are not borne by the fund property itself shall not be enforced against the fund property.

Article 9 Fund managers and fund custodians shall fulfill their duties and fulfill their obligations of honesty, credibility, prudence and diligence in managing and using fund assets.

Fund practitioners shall obtain the qualification of fund practice according to law, abide by laws and administrative regulations, and abide by professional ethics and code of conduct.

Article 10 Fund managers, fund custodians and fund share sales organizations may establish industry associations to strengthen industry self-discipline, coordinate industry relations, provide industry services and promote industry development.

Article 11 the State Council Securities Regulatory Authority shall supervise and manage the activities of securities investment funds according to law.