Shanghai Stock Exchange, Rules for Handling the Subscription, Purchase and Redemption of Open-ended Funds (Trial Implementation)

Issued: July 14 2005
Effective: as of date of issue

Main contents: The Rules specify the procedures for the subscription, purchase, redemption and transfer of custody of open-ended funds. If a fund manager is to handle the subscription, purchase, redemption or transfer of custody of open-ended funds via the Shanghai Stock Exchange, it is required to file an application with the stock exchange (Article 2). Investors who have opened ordinary stock accounts or securities investment fund accounts with the Shanghai Branch of the China Securities Depository and Clearing Company may entrust members of the stock exchange they designate to handle the subscription, purchase, redemption and transfer of custody of fund units within the trading hours of the stock exchange. Investors are required to take the form of "purchasing according to the amount of money" and "redeeming according to the number of units" in purchasing and redeeming open-ended funds. The amount of each purchase transaction should be Rmb100 or its integral multiples, and the volume of each redemption transaction should be in integral units.
Related legislation: PRC Securities Investment Fund Law, Oct 28 2003, CLP 2003 No.10 p.43 and Measures for the Administration of the Sale of Securities Investment Funds, Jun 25 2004, CLP 2004 No.9 p.49