According to the provisions of Article 5 of the Securities Investment Fund Law, the State Council is authorized to stipulate separately the specific methods for the subscription and redemption of fund shares for funds that adopt other operating methods. Therefore, the subscription or redemption of fund shares mentioned in this chapter refers specifically to the subscription or redemption of fund shares of open-end funds.

Fund share subscription means that investors apply to purchase fund shares of open-end funds managed by fund managers based on the fund share subscription price.

Fund share redemption means that fund share holders require the fund manager to repurchase the fund shares of the open-end funds they hold based on the fund share redemption price.

It is one of the important responsibilities of the fund manager of an open-end fund to handle the subscription and redemption business of fund shares. At the same time, as a professional financial management institution, fund managers should focus their work on the investment and operation of fund assets to maximize their expert financial management advantages. In addition, although this law has strict requirements on the capital, business facilities and personnel of fund managers, handling the subscription and redemption of fund shares requires a large number of talents and institutions, as well as a strong sales network and settlement system. In order to enable the fund manager to focus on the investment and operation business of fund assets, expand the offering volume of fund shares, and facilitate investors to handle the subscription and redemption business of fund shares, the fund manager, in addition to handling the subscription and redemption business of some fund shares on its own, , or you can entrust commercial banks, securities companies and other institutions to use their business networks to handle the subscription and redemption of fund shares. If a fund manager entrusts another person to handle the subscription and redemption of fund shares on its behalf, it shall sign an agency agreement with the institution, which shall be reviewed and approved by the securities regulatory authority of the State Council. An institution that applies to open the subscription and redemption business of fund shares shall meet the following conditions: it does not have a department dedicated to managing the subscription and redemption business of fund shares; it has sufficient full-time personnel with fund professional qualifications; it has a convenient and effective business network; it has Technical facilities for safely and efficiently handling the subscription and redemption of fund shares; other conditions specified by the securities regulatory authority of the State Council. To calculate the subscription and redemption prices of fund shares, the net value of fund shares should be calculated first. The net value of fund shares is equal to the net asset value of the fund divided by the total number of fund shares. The net asset value of the fund refers to the total value of the fund assets minus the fund liabilities that can be deducted from the fund assets in accordance with laws, administrative regulations, the provisions of the State Council Securities Regulatory Authority and the fund contract. The total value of fund assets includes the sum of the value formed by various marketable securities owned by the fund, principal and interest of bank deposits, fund subscription receivables and other investments. In order to objectively and accurately reflect the value of fund assets, fund asset valuations need to be carried out in accordance with relevant national regulations and the provisions of the fund contract. Open-end funds should generally value fund assets every business day. The objects of valuation are assets such as stocks, bonds, dividends, bond interest, and bank deposit principal and interest held by the fund.

The specific methods of valuation mainly include:

1. Listed and circulating securities are valued based on the market price (average price or closing price) listed on the stock exchange on the valuation date. Value; if there is no transaction on the valuation day, the market price valuation on the trading day.

2. Unlisted stocks are divided into two situations: the stocks that are listed and circulated are new shares or rights issues, and are calculated based on the market price of the same stock listed on the stock exchange on the valuation day. There is no transaction on that day. is calculated based on the market price on one day; stocks that are not listed and circulated and belong to the initial public offering are calculated based on their cost price.

3. Unlisted treasury bonds and bank deposits are calculated based on the principal plus the accrued interest until the valuation date.

4. The allotment warrants, from the ex-rights date to the allotment confirmation date, are calculated based on the difference between the market price and the allotment price; if the market price is lower than the allotment price, the allotment price is calculated.

5. Other unlisted securities are calculated at their cost price.

6. The dividends and bond interest distributed shall be calculated based on the actual amount received up to the valuation date.

7. Other methods specified in the fund contract. Liabilities and expenses that can be subtracted from the total asset value of the fund mainly include: redemption payments payable, management fees payable, custody fees payable, commissions payable, interest payable, income payable, taxes payable, other payables, etc. The subscription and redemption prices of fund shares are calculated based on the net value of the fund shares on the subscription and redemption dates plus or minus relevant fees. The so-called subscription and redemption date refers to the day when fund unit holders subscribe for fund units or request the fund manager to redeem the fund units they hold. The fees mentioned here refer to fund share subscription fees and redemption fees. Fund share subscription and redemption fees are equal to the net value of fund shares multiplied by the subscription and redemption rates. Judging from today's actual operations, fund managers usually have certain discounts on subscription and redemption fees for large subscriptions and redemptions of fund shares held for a long time. The subscription fee rate decreases with the increase in subscription volume. The redemption fee decreases as the holding years of the redeemed fund shares increase.