The Shenzhen Stock Exchange (SZSE) has published new regulations titled ‘Implementation rules on trading, subscription and redemption of securities invested funds’.
The new rules classify and integrate the existing procedures on trading funds, in response to the lack of systematic rules on fund trading, subscription and redemption.
Among the new rules, the business scope of trading, subscription and redemption of exchange-traded funds has now been expanded to cater for the demands of listing and trading this asset class.
Also, the rules on block trading of fund units have been set out and regulations on the use of fund units in case of fund bidding, subscription and redemption has been specified.
In future plans, SZSE said it intends to improve the fund trading mechanism and platform and improve the relevant matching system. It also intends to increase the cross-listing of funds in Shenzhen and Hong Kong markets.