Fund Management

Fund Subscription and Redemption Instructions

In addition to assisting clients with trading equities, futures, and other instruments, Hong Kong brokerage firms also provide sales services for fund products that are not listed on exchanges. These services generally constitute brokerage distribution activities (public and private), and brokerages offer fund subscription, fund purchase, and fund redemption transaction services. The approximate procedures for these operations are as follows:

Fund Business Summary

Subscription Process:

1. Clients submit subscription applications for funds that are in their subscription/application period through the trading terminal, mobile app, or similar channels. The system will calculate and automatically pre-freeze the funds required from the client for the subscription.
2. Operations staff fax the fund subscription summary form to the respective fund custodian and mail the original. After the fund custodian acknowledges receipt, back-office staff will generate the settlement confirmation and send it to the client.
3. On the settlement date, operations personnel will maintain the fund net asset value (NAV) in the system based on the NAV and subscription units calculated by the fund custodian, and confirm the fund subscription orders accepted on the trade date. The system will debit the client's funds and increase the client's fund share holdings.
4. Back-office staff will settle funds with the fund custodian through the bank and generate the fund transaction confirmation to send to the client.

Redemption Process:

1. Clients submit fund redemption requests for their held fund products via the trading terminal. The system will automatically freeze the fund units to be redeemed.
2. Operations staff fax the fund redemption summary form to the respective fund custodian and mail the original. After the fund custodian acknowledges receipt, back-office staff will generate the confirmation slip and send it to the client.
3. On the settlement date, back-office staff will maintain the fund NAV in the system based on the NAV and redemption amount calculated by the fund custodian, and confirm the fund redemption orders accepted on the trade date. The system will deduct the client's fund units and return the proceeds to the client.
4. Back-office staff will settle funds with the fund custodian through the bank and generate the fund transaction confirmation to send to the client.

Important Time Points (Reference)

(The above may vary depending on the fund agent.)