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Why is the fund suspended?
Funds also get more income from many investments. For investors, in the stock market, the suspension of fund redemption means that funds cannot be realized. Moreover, from the perspective of fund companies, all fund companies that suspend the redemption of funds have invisibly increased the liquidity risk. So, why is the fund suspended?

Why is the fund suspended?

1 Due to the oversubscription of investors, the fund scale has increased rapidly, and it is necessary to suspend subscription.

It means that the fund may be about to pay dividends in the near future, which invisibly increases the situation that the fund cannot be realized, so the subscription of the fund is suspended.

Due to holding some shares that have not yet been circulated, and this part of the shares is about to resume trading, in order to protect the interests, it is decided to suspend the subscription.

4 gold companies need to suspend trading temporarily due to the operation of the fund, or the redemption of the fund is suspended due to abnormal trading hours of the exchange.

5 If the fund is closed for trading during holidays and non-trading hours, or is closed due to force majeure such as the closed opening period in the early days of new establishment, the fund company will also suspend the fund redemption business.

These methods are the reasons that will lead to the suspension of fund transactions. The unilateral suspension of fund subscription or redemption is a temporary intervention measure to ensure the interests of investors or prevent the market from fluctuating on the fund's net value.