Graded funds are complex financial products with leverage characteristics and have high investment risks. In the early stage, some small and medium-sized investors lacked understanding of the operating mechanism and risks of graded fund products and blindly bought them and suffered losses.

In order to standardize the suitability management of investors in the hierarchical fund market and effectively safeguard the legitimate rights and interests of investors, the Shanghai Stock Exchange (hereinafter referred to as the SSE) has formulated guidelines for the management of hierarchical fund business.

The "Shanghai Stock Exchange Classified Fund Business Management Guidelines" shall apply to matters such as share conversion, investor suitability management, investor education and risk warnings of Shanghai Stock Exchange's classified funds; if the "Guidelines" do not provide for it, other relevant regulations of the Shanghai Stock Exchange shall apply.