The CSRC officially issued the Guiding Opinions on Hedging Strategic Funds. In order to avoid investors' misunderstanding of product capital preservation, the name of capital preservation fund is adjusted to hedge strategy fund. This new guidance is actually a new regulation for capital preservation funds, but this new regulation is a bit fierce. We have to change the name of a class of products. In the future, we have to get used to this new name-hedge strategic fund.

1. What are the new rules for hedge fund?

1. The capital preservation fund is just renamed and will not disappear. In order to protect investors, the CSRC removed the word capital preservation and changed it into a hedging strategy to avoid investors' misunderstanding of product capital preservation.

2. The existing capital preservation fund does not need to be renamed and the product guarantee mechanism does not need to be adjusted. If the capital preservation fund of the capital preservation cycle enters the next cycle, it needs to be renamed and the product guarantee mechanism adjusted. If you can't meet the requirements of the new regulations, you must transform or liquidate.

3. Major changes in the product guarantee mechanism: the joint and several liability guarantee mechanism has been adopted, and only buyout guarantee or other guarantee mechanisms recognized by the CSRC can be adopted. In other words, the fund company was originally responsible for capital preservation, but now the guarantor is responsible, and the guarantor of capital preservation has changed from nominal guarantee to actual guarantee. As a guarantor, the guarantee company is no longer just pretending.

4. The obligors of capital preservation will not only be guarantee companies, but also banks and securities companies.

5. Because the principal-guaranteed obligor is no longer installed, the principal-guaranteed cost of hedge strategy funds will rise sharply. Although this part of the fee has never been charged to investors, it will be charged in the management fee charged by the fund company, but it will eventually be passed on to investors.

6. During the operation cycle of hedge strategy funds, subscription and conversion into business are no longer open. Since it is impossible to break even on the way, it is simply not allowed to buy it.

7. The new guidelines strictly limit the proportion of hedge fund investing in high-risk assets. In the future, the volatility of such products will be reduced, and the possibility of income explosion will be greatly reduced, and the charm of capital preservation funds will be greatly reduced.