Stop trial a year later the Commission officially suspended rating Fund

From suspend to pause, rating Fund will enter a "stock." Plato crowding the screen half a day after millions

On August 19, the SFC stated that, taking into account the complex rating Fund, investors are unwilling to understand, the Commission suspended the grading the Fund's registration. At present, the Commission is working on improving the rating Fund supervision arrangements.

1 year ago on August 21, the SFC stated that, this product is currently suspended pending (rating Fund) registered work, relevant departments are also studying relevant policies.

Everything has to be attributed to a shares plunged last year. Rating Fund leveraged properties, as well as discount, forced many investors to buy grade b suffered heavy losses, the biggest losses as much as 80%.

Although there are bodies depending on the rating Fund as a tool, used properly can well move the lever. But in the view of many observers, rating Fund complex, folded under irreversible strangling individual tools.

Where the money has gone

Under the rating Fund is a Fund's portfolio, by decomposing gains or net assets of the Fund, created two levels (or multilevel) share some differences in risk-return performance of funds. Rating Fund is divided into shares, a share (also known as the robust share) as well as the b share (also referred to as leverage or aggressive share).

So to speak, classification of current fund market fund is the most complex, involving not only three shares, also converted on a regular basis, on the conversion mechanism, fold under and other irregular. Is more complex, because of the grading the Fund's a and b shares can be traded separately, it also creates a net and the trading price before discount, premium, and produces a variety of hedge models.

In 2015 a-share plunge during grade funds have folded under, many investors are confused why a limit, I lost more than 40%?

According to the folding rules under the rating Fund, class b shares triggered when net worth falls below 0.25 folded under. The next folding process, b-share in net terms, rather than by price.

This is why investor losses, due to trading in the secondary market down b-share mechanism, so the markets have tumbled in the process, price decreases missed the net decline. When you have a base b share trading was at 0.4 Yuan, under this Fund might have triggered the break.

Here you can count such an account, 0.4 Yuan to buy 1000 shares b, cost price of 400 Yuan. After NET falls below 0.25 Yuan, because the relevant mechanisms, funds and the net value of a and b shares will return 1, which class b shares lost 3/4, hands become 250 1 Yuan worth of b shares. Resulting loss was 38%.

Insiders told reporters that some Christian Democrats to buy grade b shares when the stock, only stock b is to buy securities, gem b is to buy the gem and related risks are not known.

Size of KS

In 2015, after the great leap forward, in the face of the market after the collapse, are experiencing a shrinking "suffering". This year has been rating funds due to its small size choose the initiative "wound up", a small amount of daily turnover of grade b and even into thousands of Yuan dynasties.

Statistics show that on July 21, 2014, eve of the bull market started. Grade b listed transactions (not specifically refer to the passive index) for 43 total share of 20.4 billion, yinhuarui of them accounted for 11.8 billion into a Fund, there are more than 1 billion copies of the only Shen Chengzhi b and permit 100B.

On June 12, 2015, the bull market to the highest point of 5,178. Listed grade b-88, total share of 150.1 billion, were 7.5 times times a year ago, several fund companies featured rating Fund big. Shen Wan stock market b share of 18.2 billion, 4 grade b shares over 10 billion, 30 grade b share over 1 billion.

On August 12, 2016, a year after the stock market crash. Grade b listed transactions reached 129 total share of 70.1 billion, last year, less than half of the peak. There are billions of products, the largest share of investment broker b, farm share of 9.5 billion, 1 billion copies of the grade b fell to 16.