The impact of liquidity risk on financial institutions and financial system was fully demonstrated in the subprime mortgage crisis in the United States. For China, similar liquidity risks are concentrated in the field of open-end funds. Once investors' expectations change, the large-scale redemption of funds may lead to the liquidity risk of open-end funds, and trigger a vicious circle of fund redemption-stock price decline-redemption amplification-further stock price decline, thus affecting financial stability. Therefore, we should be prepared to maintain the stability and healthy development of the stock market.