We can't start with the coal fund. In order to protect the interests of A share holders and avoid excessive leverage of B share net value (the CSRC stipulates that it shall not exceed 6 times); Most graded funds have designed an irregular downward conversion mechanism. The way to deal with it is when the net enterprising value falls to a threshold.

Note that the net fund shares of A share, B share and parent fund share will be adjusted to 1 yuan. After the adjustment, the steady share and the enterprising share will be retained according to the initial proportion, and the rest after the A share and the B share are paired will be converted into the parent fund's on-site share and distributed to the A share investors.

Coal formation

Coal is a very thick layer of black humus, which has been accumulated on the ground by the branches and roots of plants for millions of years. Due to the change of the earth's crust, it has been buried underground for a long time and isolated from the air. After a series of complex physical and chemical changes at high temperature and high pressure, a black combustible sedimentary rock is formed, which is the formation process of coal.