According to the provisions of the Notice on Taxation of Securities Investment Funds (Caishuizi [1998] No.55) and the Notice on Some Preferential Policies for Enterprise Income Tax (Caishuizi [2008] 1 No.55) issued by the Ministry of Finance of People's Republic of China (PRC) and State Taxation Administration of The People's Republic of China, enterprise investors who pay dividends from the funds are exempted from enterprise income tax.

Operating procedures:

The first step is to hold or buy the top five funds with high dividend characteristics before the fund dividend registration date to build a fund portfolio with good tax avoidance effect.

The second part is to sell or redeem the fund after dividends and ex-dividends.

Advantages:

1, simple operation, closed-end fund trading is the same as stocks;

2, the handling fee is low, and the transaction is free of stamp duty than the stock trading, and only the trading commission is charged, and the total trading amount is about two thousandths;

Disadvantages:

The secondary market price of closed-end funds is greatly affected by the broader market. If there is a sharp drop during the dividend period, there may be losses.