The Shanghai Stock Exchange ("SSE") and the China Securities Depository and Clearing Corporation Limited ("CSDC") have recently issued the Guidelines for Listed Open-ended Funds (Revised in 2019) (the "Guidelines") and also distributed a circular to clarify arrangements for relevant matters. The Guidelines have taken effect immediately from the date of issuance.
The Guidelines expressly state that members of the SSE may participate in the trading of listed open-ended funds (LOF) and the division and combination of structured funds on the SSE, adding that they may also participate in the subscription, purchase and redemption of LOFs on the SSE if they are recognized by the SSE and CSDC to be qualified for selling funds. Fund managers and fund sale agencies shall, in line with relevant rules of the SSE and CSDC, go through formalities for participating in the LOF business on the SSE. According to the circular released, an application may be filed after the establishment of the LOF and before the listing thereof on the SSE, for the custody transfer of over-the-counter units into the on-floor business; subscription, redemption, and custody transfer of on-floor units into the over-the-counter business, will not be handled temporarily prior to the listing, and the specific time when such matters will be handled will be separately announced later. The business categories will remain unchanged after the listing of LOFs on the SSE.