Stocks cannot be used when applying for cash substitution, and stocks will not be returned when redeemed; cash substitution can only be applied for cash redemption, and cannot be applied for component securities such as gold ETFs.

Cash substitution means that ETF component stocks must be replaced with cash during the subscription and redemption process due to suspension of trading, related stocks, etc. That is, stocks cannot be used when applying for subscription, and stocks will not be returned when redeeming, but cash will be used.

There are "required," "allowed," and "prohibited" cash-substitute ETFs whose constituents are either securities or cash.

Cash refund substitution means that investors can only apply for cash redemption and cannot apply for component securities such as gold ETFs.

For ETF redemptions, there will be a second liquidation, with more cash returned and less compensation.

Subscription refers to the behavior of investors applying to subscribe for fund shares in a public subscription state during the period after the establishment of the fund.

After the fund closing period, if you apply to subscribe for an open-end fund, it is customary to call it a fund subscription to distinguish subscriptions during the issuance period.

The fund's subscription is a buy.

For listed closed-end funds, the buying method is the same as for ordinary stocks.

For open-end funds, divide the amount you want to subscribe by the net value of the fund on the subscription date to get the number of units to subscribe.

ETF substitution rules 1) Prohibition of cash substitution: This means that when subscribing and redeeming fund shares, cash is not allowed to be used as a substitute for the component securities.

2) Cash substitution is allowed: This means that when subscribing for fund units, cash is allowed to be used as a substitute for all or part of the component securities, but when redeeming fund units, cash is not allowed for the component securities.

Substitution amount = number of substitute securities × latest price of the security × (1 + cash substitution premium ratio).

3) Cash replacement is required: This means that when subscribing and redeeming fund shares, the component securities must be replaced with cash.

Substitution amount = number of substitute securities × yesterday’s closing price of the security × (1 + cash substitution premium ratio).

4) Cash replacement for refunds and subsidies: This means that when subscribing and redeeming fund shares, the component securities must be replaced with cash, but more refunds and less supplements need to be made based on the buying and selling conditions of the fund company.

Substitution amount = number of substitute securities × yesterday’s closing price of the security × (1 + cash substitution premium ratio).