Listed open-end fund (LOF) refers to the open-end securities investment fund issued and traded in Shenzhen Stock Exchange. Listed open-end funds are essentially open-end funds, and the total amount of fund shares is not fixed. Fund shares can be purchased and redeemed at the time and place agreed in the fund contract. Compared with ordinary open-end funds, it has the following characteristics:
(1) The sale of listed open-end funds combines the sales advantages of consignment agencies such as banks and the trading network of Shenzhen Stock Exchange. Banks and other agency outlets still use the current counter sales method, while the trading system of Shenzhen Stock Exchange adopts the popular online pricing and issuance method of new shares.
(2) After the listed open-end fund is approved to be listed and traded on the Shenzhen Stock Exchange, investors can choose to purchase and redeem the fund shares at the closing net value of the fund shares in banks and other consignment agencies, or buy and sell the fund shares at the matching transaction price in the member securities business departments of the Shenzhen Stock Exchange. The subscription and redemption procedures of funds are the same as those of ordinary open-end funds. The trading methods and procedures of open-end funds listed on Shenzhen Stock Exchange are basically the same as those of closed-end funds. The formation mode and mechanism of the transaction price of listed open-end funds are consistent with that of A shares. Different from closed-end funds, listed open-end funds are subject to price limit from the first day of listing, and the price ratio is 10%. The transaction price of open-end funds is calculated and announced by the fund company based on the net asset value of the fund every day according to a certain pricing method.
(3) Investors can realize the conversion between trading in the trading system of Shenzhen Stock Exchange and purchasing and redeeming fund shares in consignment agencies such as banks through cross-system transfer custody.