China Securities Regulatory Commission, Guiding Opinion on Further Regulating the Securities Investment Fund Valuation Business
中国证券监督管理委员会关于进一步规范证券投资基金估值业务的指导意见
November 10, 2008 | BY
clpstaff &clp articles &Clarity for valuation of securities investment fund products with no market price.
Issued: September 12 2008
Effective: As of the date of issuance
Main Contents: Article 1 of the Guiding Opinion stipulates that valuation of the different investment products held by securities investment funds shall be conducted according to the following principles:
(1) In the case of an investment product in an active market, the fair value shall be determined according to the market price if a market price is available on the day of valuation. Where no market price is available on that day, but there has been no major change in the economic environment since the most recent trading day and no major event that affects the price of securities has occurred in the securities issuing organisation, the fair value shall be determined according to the most recent market trading price.
(2) In the case of an investment product in an active market, where no market price is available on the day of valuation and there has been a major change in the economic environment since the most recent trading day or a major event that affects the price of securities has occurred in the securities issuing organisation, resulting in a potential valuation adjustment to the net fund asset value on the previous valuation day of 0.25% or more, the fair value shall be determined by adjusting the most recent market trading price, with reference to the current market price of similar investment products and other factors such as major changes.
(3) In the case of an investment product that is no longer in an active market and the potential valuation adjustment to the net fund asset value on the previous valuation day is 0.25% or more, the fair value of the investment product shall be determined by means of a valuation technology that has been proved to be reliable based on previous actual market trading prices and that has been generally accepted by market participants.
clp reference:3700/08.09.12promulgated:2008-09-12effective:2008-09-12This premium content is reserved for
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