I. Summary of the new regulations:
1. Provisions on application for redemption, lending and recovery of graded funds:
Article 6 has been added to the guidelines. The Exchange may, according to the market situation or the application of the fund manager, suspend the subscription, split, merger declaration or resumption of trading of graded funds.
In detail: this clause is equivalent to giving the fund company a sword. When there is an extreme market similar to last year, graded fund companies can stop losses in time when faced with arbitrage or huge redemption. This rule will have a certain artificial impact on the liquidity of graded funds and their sub-shares.
2. Provisions on the conversion of graded funds:
The Guidelines retain the provision that the listing of sub-shares will be suspended from the market opening to the conversion base date 10: 30, but delete the provision that the listing of Class B shares will be suspended from the conversion base date 13: 00 to 14: 00.
In detail: reducing the suspension time on the next discount day is an improvement of liquidity.
3. Size limit of the parent fund:
In the course of fund operation, if the number of holders is less than 65,438+0,000 and others do not meet the listing conditions stipulated by laws, regulations and exchanges, the stock exchange will terminate its listing.
In detail: once the new grading regulations are formally implemented, a large number of investors will withdraw from the trading of grading funds because of the amount of funds, which will indeed cause many small-scale parent fund holders to continue to decrease. As a result, some funds may not meet the listing conditions or even be liquidated, and the withdrawal of funds will make investors face certain liquidity risks and investment losses. Affected by this regulation, the future grading market may gradually present a monopoly pattern and brand effect, that is, one or two large grading funds in each industry will be more easily favored by investors, while other similar products will be gradually marginalized, and the grading fund market will eventually become relatively concentrated. I think this is a good thing.
4. Increase investor suitability management:
The Guidelines clarify the threshold standards for individual investors and general institutional investors: the average daily securities assets under their names are not less than 300,000 yuan in the 20 trading days before the application authority is opened, and the securities assets include the assets in securities accounts and capital accounts opened in the name of investors, excluding the funds and securities that investors integrate through margin financing and securities lending. In addition, it is clearly pointed out in Article 10 of the Guidelines that investors who no longer meet the requirements of relevant business rules may face the risk that the relevant business authority of graded funds will be cancelled.
In detail:
There are actually several problems hidden in this. I consulted the cooperative brokers on the following issues, but some issues have not been clearly stated by the CSRC at present:
1) For users with multiple accounts, the daily average assets should be summarized according to the total assets of all accounts under one account, and there is no need to transfer personal assets to make up the amount under one account.
Another thing to note here is that 300,000 assets must be all the assets actually invested by individuals, excluding the funds and securities integrated through margin financing and securities lending.
2) Is this permission opened through the network hall or does it need to be opened?
At present, brokers have not received the official notice from the CSRC. However, in Article 18 of the Guidelines, it is required that "this right requires the user to sign the graded fund investment risk disclosure in writing at the business department site". The risk disclosure statement shall include the necessary clauses listed in the annex to this guide. "If it is necessary to open the counter, the threshold for users will rise a lot.
3) For users with multiple accounts, if the graded fund function is enabled in one account, do other accounts need to be enabled?
The CSRC has not given a clear explanation for this, but the opening of authority should be carried out by sub-brokers. There won't be too many accidents.
4) After the authority of the graded fund is opened, is it necessary to ensure that the assets in the account are always above 300,000 yuan?
It will be opened in accordance with the functional authority of capital demand such as margin financing and securities lending and Shanghai-Hong Kong Stock Connect, and investors' assets will not be evaluated after opening. However, this point is particularly emphasized in the grading guidelines, so investors' account funds may be checked regularly in the future. If they fail to meet the standards, there may be the risk of canceling their authority. However, there is no clear regulation on how often to audit assets.
At present, the specific implementation measures of the new rules and regulations have not yet been finalized. I will always pay attention to the dynamics of brokers and report to you as soon as possible.
So why should the exchange implement appropriate management of graded funds?
Graded funds are all leveraged products, but because of their low leverage, the exchange did not supervise their trading rights for a long time after listing, and the reason why the exchange introduced this investor appropriateness policy this time should be largely due to the stock market crash last year. In the first half of last year, the market soared, which led to a large premium on the daily limit of Grade B, and then began to plummet in the second half of the year. A large number of Grade B continued to fall, which made many Grade B directly trigger the discount threshold on the daily limit. Many retail investors, not knowing the rules of graded funds, bought on the day of discount, resulting in more than half of the principal loss overnight. During that time, people sat in front of the CSRC every day. Brokers have also been overwhelmed, issuing announcements every day to remind retail investors not to buy graded B. This time, the exchange will make up for it.