The discount rate of closed-end funds refers to the restrictions on the total amount of fund shares when fund sponsors set up funds. After the total amount of fundraising is completed, the fund is announced to be established and closed, and no new investment will be accepted for a certain period of time.

The circulation of fund shares is listed on the stock exchange, and investors must bid on the secondary market through securities brokers in the future.

For example, the market price of a closed-end fund in 0.8 yuan has a net value of 1.20 yuan, so we say its discount rate is (1.20-0.8)/1.20 = 33.33%.

Foreign methods to solve the large discount of closed-end funds include: closing to opening, fund liquidation in advance, fund tender offer, fund share repurchase, fund management and distribution, etc.