The liquidation line refers to the bottom line of capital settlement. According to the Measures for the Administration of the Operation of Securities Investment Funds, if the number of fund share holders is less than 200 or the net asset value of the fund is less than 50 million yuan after the fund contract of the open-end fund comes into effect, the fund manager shall report to the China Securities Regulatory Commission in time; If the above situation occurs for 20 consecutive working days, the fund manager shall explain the reasons and submit the solution to the China Securities Regulatory Commission. The fund manager has the right to announce the termination of the fund after obtaining the approval of the China Securities Regulatory Commission.

Fund liquidation refers to the realization of all fund assets and the distribution of income to holders. The liquidation time is stipulated in the fund contract when the fund is established. The holders' meeting may modify the fund contract and decide the liquidation time of the fund.

open-ended fund

capital settlement

Open-end funds generally do not stipulate their own duration, but in some cases, open-end funds can make liquidation decisions and end their existence through the liquidation and distribution of fund assets.

Overseas, there are several situations in which open-end funds need to be liquidated:

According to the provisions of the fund contract or the articles of association

According to Taiwan Province Province, the reasons for trust deed's termination of securities investment shall conform to the stipulations of trust deed's securities investment, unless otherwise stipulated by laws and regulations.

The resolution of the holders' meeting or shareholders' meeting is adopted.

According to British regulations, open-end funds can be liquidated by special resolution. The liquidation of open-end funds in Hong Kong also needs the resolution of the holders' meeting.

The competent authority cancels the open-end fund license.

① According to the written application of the fund manager. According to British regulations, the authorized directors of fund managers apply to the Financial Services Authority (FSA) for cancellation of authorization, and with the consent of FSA, open-end funds can be liquidated.

② Inappropriate establishment or becoming inappropriate. According to Dutch regulations, the Ministry of Finance may revoke the license if it finds that the original application materials are wrong or incomplete or the application for establishment under the same conditions will be rejected due to changes in circumstances.

③ Fund managers and custodians no longer meet the statutory requirements. South Korea stipulates that trust deed can be abolished when the entrusting club (fund manager) is disqualified or dissolved, but it has not been handed over to the Minister of Finance.

④ Based on public welfare or beneficiary's interests. Taiwan Province area stipulates that if it is appropriate to terminate trust deed's securities investment for public welfare or beneficiary's benefit, China Securities Regulatory Commission may order it to be terminated.