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Why can't fund property be used to underwrite securities?
The Securities Investment Fund Law clearly stipulates that the fund property shall not be used for underwriting securities. A core issue in the legislation of securities investment funds is to fully protect the legitimate rights and interests of fund share holders. If there is no legal regulation, then the fund with huge financial strength will be a "scourge". Free investment and free guarantee will not only breed corruption, but also easily lead to financial risks. Therefore, in order to ensure the safety of fund property and safeguard the interests of fund share holders, this law strictly restricts the operation of fund property.