Because closed-end funds are traded by bidding in securities trading, the transaction price is affected by the relationship between market supply and demand, which does not necessarily reflect the fund's net asset value, that is, the transaction price of closed-end funds has a premium and discount phenomenon relative to its net asset value. The practice of foreign closed-end funds shows that the transaction price often has the price fluctuation law of first premium and then discount. Judging from the operation of closed-end funds in China, no matter how the fundamental situation changes, the transaction price trend of closed-end funds in China has never deviated from the price fluctuation law of first premium and then discount. At present, China's closed-end funds are in the stage of "discount", and the discount rate of closed-end funds in China (market price MINUS net value and then divided by net value) has gradually increased since 2002. The long-term discount rate of some closed-end funds is as high as over 30%, which is significantly higher than that of foreign closed-end funds.