The harm of money trapping is not limited to the market itself

The impact of money trapping is by no means limited to infringing on the interests of investors. More importantly, its existence has caused my country's capital market to gradually lose development. space.

Money trapping will reduce the quality of market resources and damage the foundation of the market. As we all know, high-quality listed companies are the foundation for the development of a country's capital market. No matter what kind of money trapping behavior it is, it will more or less affect the quality of listed companies, reduce their investability, and then affect the development speed of the entire market. Money trapping will encourage speculation, which can easily bring bubbles to the market and create a certain living space for speculative behavior, which is not conducive to market stability. Most importantly, money trapping behavior will affect investors' confidence in the securities market, inhibit their investment impulse, and ultimately affect the long-term healthy development of the market.

It is worth noting that the harm caused by money trapping behavior to the capital market is becoming increasingly obvious. Since 2004, my country's capital market has undergone a vigorous transformation. At the end of 2006, the management even proposed the strategic goal of expanding the capital market and helping my country realize the "rise of a great power". It is foreseeable that in the future, national competition in the world will no longer be about competing ships and cannons, but more about gaming in the arena of the capital market. At this level, the international competitiveness of the capital market is equivalent to the competitiveness of the country. In other words, the harm of money trapping is no longer limited to domestic impact, but will affect China's future survival and development. It is a major issue that is truly related to the national economy and people's livelihood.

When the net value of funds is high, fund companies are also looking for ways to make money: fund spin-offs and fund cloning are about to come out.

Fund splitting: "fooling" investors

The so-called fund splitting refers to turning one fund into two, just like a listed company giving away shares.

In fact, whether it is 10 for 2 or 10 for 10, it is just a numbers game, because the investor's assets have not changed at all. As the number of shares increases, the unit amount decreases in the same proportion. Therefore, this is just a prop used by a group of people who think they have financial expertise to deceive investors. It is impossible for investors to make an extra penny because the fund company splits the fund. The purpose of lowering the net worth is to attract fund investors who are afraid of heights, just like the buy-one-get-one-free promotion in a shopping mall.

Fund cloning: violation of fund law

If the spin-off is for promotion, it is nothing, but fund duplication seriously conflicts with existing regulations. Fund duplication, also known as fund cloning, means that a fund company issues a new fund that is exactly the same as its existing fund. The product design is the same as that of the old fund, and the prospectus and fund contract do not need to be modified.

Article 7 of Chapter 2 of the "Measures for the Operation and Management of Securities Investment Funds" clearly stipulates that when applying to raise funds, the funds to be raised should not be the same as the funds already managed by the proposed fund manager.

The above regulations are to avoid the homogeneity of fund products under the same fund manager and are an important measure to prevent fund companies from stealing money from investors. But in fact, it has long been in vain. Some old companies have eight, nine or even more than ten fund products, all of which are high-growth, active, and growing. As long as you change a bright name, you can easily put old wine in new bottles. , making it impossible for investors to distinguish the differences between these funds.

Now that they are proposing fund cloning, they are even more confident. They don’t even need to cover up, and they don’t even bother to take the name of the fund. Just copy it directly, and now they want to legalize it and regulate it.

It is reported that fund splitting and fund cloning were proposed by a large fund company in 2004. Nowadays, the ghost is still there, and it has emerged again when the stock market is getting warmer. It can be said that as long as you think about it, you can do it.