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.
According to the relevant laws and regulations of China Fund, if the net asset value of the fund is less than 50 million yuan for 60 consecutive days, or the number of fund share holders is less than 65,438+000 for 60 consecutive days, the fund manager has the right to announce the termination of the fund after approval by the China Securities Regulatory Commission.
During the Asian financial crisis, Hong Kong had to be liquidated because of too few assets. Due to the bearish market outlook and redemption of fund shares, many fund companies in Hong Kong closed some funds.
Fund investors also have to bear risks, so first use the remaining funds of the fund to repay the loan, and then return the funds according to the investor's investment share after the loan is repaid. Even if Public Offering of Fund is liquidated, it will return the money to investors according to the net value on the last day, which is equivalent to the concept of compulsory redemption.
In China's fund liquidation, we will refer to foreign practices and make specific provisions on possible liquidation. For example, according to the principle of marketization, the market determines whether the fund exists reasonably and provides possible paths for it. The details can be stipulated in the fund contract, or decided by the holders' meeting, or approved by the liquidation authority.
In order to protect the interests of investors, strict and specific provisions should be made on the procedures and supervision of liquidation. If it should be agreed that the fund liquidation shall be approved by the CSRC, the circumstances stipulated in the contract shall be filed with the CSRC.
After the liquidation begins, the time and frequency of publication in newspapers and periodicals shall be specified, and the transaction shall be stopped during this period, and the holder shall be paid with the net asset value at the closing date of the announcement.
Article 44 of the Measures for the Operation and Management of Securities Investment Funds promulgated in 2004 stipulates that 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 an 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.