During the subscription and redemption of the Fund, a basket of stocks (50 constituent stocks) is exchanged with the SSE 50ETF fund shares, while the subscription and redemption of other open-end funds are exchanged with cash and fund shares.

Redemption fund includes three trading procedures: trading of SSE 50ETF in the secondary market, subscription and redemption in the primary market and trading of a basket of stocks in the secondary market. To understand the whole arbitrage process, we must first understand the specific methods of purchase and redemption.

Subscription: exchange a basket of shares of the fund company for the SSE 50ETF fund share.

Redemption: Exchange the SSE 50ETF fund share for a basket of stocks from the fund company, and the proportion of all kinds of stocks in the basket is consistent with the SSE 50 Index.

2. Redemption of funds means fund subscription and fund redemption.

Subscription refers to the behavior of investors applying to buy fund shares after the fund is established.

After the fund is closed, if you apply to buy an open-end fund, it is customarily called fund subscription to distinguish it from subscription during the issuance period. The subscription of the fund is to buy.

If you apply to sell your fund shares at the published price and get back the cash, it is customarily called fund redemption. Redemption of the fund is selling.