It is difficult to judge the intrinsic value of closed-end funds. After the closed-end fund is listed on the exchange, the transaction price is not necessarily equal to the net value of the fund, but is determined by the balance of market buying and selling power. When the market price of a closed-end fund is lower than the net value of the fund, the fund will be discounted.

On the day of listing of closed-end funds, a large number of fund holders will sell their own funds, which will lead to a decline in fund prices and a discount when there are more sellers and fewer buyers.