There are two main types of on-exchange money funds, both of which are used as margin management tools, namely, on-exchange money funds represented by Huabao Tianyi and on-exchange redemption money funds represented by Huitianfu. For investors, exchange money funds are more attractive than exchange money funds. Mainly in four aspects:

First of all, in the way of participation, trading can be bought and sold at the market price like stocks, which is more in line with the habits of stock investors and retains the redemption mechanism; Redemption type can only be redeemed and cannot be traded in the secondary market.

Secondly, in terms of convenience, the transaction types can be bought and sold directly through the trading terminals of all brokers, and directly participate in the Shanghai A-share account or the Shanghai Stock Exchange fund account without opening another account or signing a contract; Redemption type is only open to investors through some brokers.

Thirdly, in terms of liquidity, the trading type realizes intra-day circulation trading, that is, T+0 can be sold after buying, and Huabao Tianyi trading and redemption amount are unlimited, which is convenient for investors to participate and withdraw flexibly during trading hours; Once the redemption application is submitted, it is irrevocable, and the redemption limit is set every day. Investors generally need to buy as early as possible during trading hours, otherwise it may form a "waste order".

Finally, the transaction type can be used as the margin of margin financing and securities lending business, and the highest conversion rate can reach 90%; The redemption application has not been realized.