Closed-end funds cannot be bought, sold and redeemed at any time, which leads to a new trading mode of closed-end funds-direct listing. This operation is to treat the share of closed-end funds as a stock. After its free circulation, we don't need to consider the specific transactions of closed-end funds. However, do you know what its listing requirements are?

What are the trading conditions of closed-end funds?

According to the relevant regulations, the listing and trading conditions of closed-end funds need to meet other conditions stipulated in the Listing and Trading Rules of Closed-end Funds, such as the fund raising is in compliance with relevant regulations, the fund contract term is more than five years, the fund raising amount is not less than 200 million yuan, and the number of fund share holders is not less than 1000. After listing, these funds are generally traded on legally established stock exchanges and bought and sold through public bidding.

At present, the listing and trading conditions of closed-end funds are more complicated, which is to prevent the funds from falling into temporary dissolution, insufficient liquidity and fund trading risks. The fund shares issued by the fund sponsors of closed-end funds to investors often indicate that the holders enjoy the rights of income distribution, acquisition of remaining property after liquidation and other related rights according to their shares, so if there is any situation in the fund, investors cannot deal with it in time.

In this regard, relatively large closed-end funds with good liquidity can circulate in the whole market, which can be similar to the low position of stocks, thus helping to reduce the risks brought by holding closed-end funds for a long time. However, we may understand that such measures often put forward extremely high requirements for the basic situation of closed-end funds.