The establishment and opening of fund companies have been strictly examined and approved by China Securities Regulatory Commission, which has made detailed provisions on the background of shareholders, back-office system, investment management and risk control of fund companies. Moreover, the fund assets of fund companies are all managed by banks, so the fund companies go bankrupt. As long as the banks are still there, investors' assets will not be damaged. In addition, the Fund Law stipulates that even if the custodian bank goes bankrupt or liquidates, the assets entrusted by the fund will be protected.

Moreover, even if the fund company goes bankrupt, the net value of the fund will not fall to zero. According to China's regulations, 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 for 60 consecutive days, the liquidation price is generally 0.3 yuan, which means that no matter how many funds are in front, they will be automatically redeemed at the price of 0.3 yuan. However, this liquidation condition is difficult to meet, so the fund that really suffered liquidation (except qdii) has not appeared so far.

Bankruptcy should not have much impact on the public. Because the money to buy funds is entrusted by banks, fund companies generally cannot be used for other purposes. Unless the fund company cooperates with other listed companies to set up a rat warehouse, in addition, the bankrupt government will ask other fund companies to accept it. This is not so worrying. What is worrying is that fund companies set up rat warehouses, which is the biggest potential loss for the people.