Bond fund is a kind of fund settlement through brokers. The settlement of these funds is carried out in the account opened by the brokerage firm. In the previous direct connection mode, the securities company only participated in the trading process, and the custodian institution (bank) made settlement and delivery. In bond settlement funds, securities companies become the main body of settlement and can fully participate in fund trading, custody and settlement.

What does direct investment by securities firms mean?

Direct investment by securities firms means that securities enter the field of industrial investment in various ways. Securities firms invest in the equity of non-public offering companies, and the investment income is realized by selling the equity when the company goes public or merges in the future. At present, the regulatory authorities have limited the scope of "direct investment" of domestic brokers to pre-IPO, that is, investing in companies to be listed, and initially formulated rules such as "the investment period shall not exceed three years".