According to the Announcement on Termination of Operation, Listing and Modification of Fund Contract of Herun A Shares and Herun B Shares of Xingquan Herun Hierarchical Hybrid Securities Investment Fund, Herun A Shares of Xingquan Herun Hierarchical Hybrid Securities Investment Fund (hereinafter referred to as "the Fund") (in the market referred to as Herun A, fund code: 150016) The delisting date of Hehe Run B shares (market abbreviation: Hehe Run B, fund code: 150017) is January 4, 2021 (the last trading day is December 31, 2020), and the base date of share conversion is December 31, 2020. At the end of the benchmark date of share conversion, based on the net value of fund shares of Xingquan Herun shares, Herun A shares and Herun B shares are converted into on-site Xingquan Herun shares according to their respective reference net value of fund shares.
In view of the relevant arrangements for the termination of the operation of the Fund's Hurun A shares and Hurun B shares, the Fund Manager specially reminds investors of the following risk issues:
1. Before the base date of conversion (including the base date of conversion), the shares of Hurun A and Hurun B can still be traded normally. During this period, investors should pay close attention to the following risks:
(1) As there may be a discount and premium transaction between Herun A shares and Herun B shares, their discount and premium rates may change significantly. If investors buy at a premium, they may suffer a large loss after conversion (see Article 4 of this announcement for specific conversion methods and examples).
Investors participating in transactions in the secondary market are specially invited to pay attention to the risks caused by discounts and premiums.
Investors should pay close attention to the changes in the net reference value of the fund shares of Hurun A shares and Hurun B shares (available on the company's website).
(2) The share of Herun A has the characteristics of low expected risk and relatively stable expected return. However, after share conversion, the holders of Herun A share will hold Xingquan Herun shares with high expected risk and high expected return, and the original holders of Herun A share will bear the risk of loss due to market decline.
When the net value of Hurun B shares is lower than or equal to 1.2100 yuan, the Hurun B shares have a certain leverage attribute and are characterized by high expected risk and relatively high expected return. However, after share conversion, the holders of Hurun B shares will hold Xingquan Hurun shares with high expected risk and high expected return. Since Xingquan Hurun shares have no leverage characteristics, There will be no leveraged gains or losses, but the original share holders of Hurun B still have to bear the risk of losses due to market decline.
2. Before the A share and B share of Hurun are converted into Xingquan Hurun shares, the holders of A share and B share of Hurun have two ways to withdraw:
(1) Sell fund units at market price in the market;
(2) On the spot, he will merge his Hurun A shares and Hurun B shares at a ratio of 4:6 to form Xingquan Hurun shares, and apply for redemption on the spot or after being transferred to custody outside the market according to the net value of the fund shares of Xingquan Hurun shares.
3. As the holders of Hurun A shares and Hurun B shares may choose to sell or redeem on the floor, the number of shares on the floor may decline significantly, and there may be insufficient liquidity on the floor. Investors are hereby invited to pay attention to the liquidity risk.
4. At the end of the benchmark date of share conversion, based on the net value of the fund shares of Xingquan Herun shares, Herun A shares and Herun B shares are converted into on-site Xingquan Herun shares according to the reference net value of their respective fund shares (rather than the secondary market price). The converted Xingquan Herun shares held by the holders of Herun A shares and Herun B share funds are rounded (the minimum unit is 1), and the balance is included in the fund assets. The holders of fund units with premium transactions before conversion will suffer losses due to the disappearance of premium.
The converted Xingquan Herun shares held by the holders of Herun A shares and Herun B share funds are rounded (the minimum unit is 1 share). The fractional shares less than 1 share are treated in accordance with the relevant rules of China Securities Depository and Clearing Corporation Limited. The converted fund shares are subject to the data finally confirmed by the registration and clearing institution. Due to the error caused by the rounding calculation of the number of fund shares, the fund share holders will face the risk of reducing the net asset value of the fund held by them. For the holders of Hurun A shares and Hurun B shares who hold very few shares, they will face the risk of being included in the fund assets when the number of shares held after conversion is less than one.
The number of fund shares held by fund share holders of Hurun A shares and Hurun B shares will change after conversion, for example:
Assuming that the net value of fund shares (reference) of Xingquan Herun shares, Herun A shares and Herun B shares on the benchmark day of share conversion is 0.900 yuan, 1.010 yuan and 0.790 yuan respectively, investors A, B and C hold 100000 shares of Xingquan Herun shares, Herun A shares and Herun B shares on the market respectively, and the changes of their fund shares are shown in the table below:
Before conversion
Share conversion ratio
After conversion
Net value of fund unit (reference) (yuan)
Fund shares
Net value of fund units (yuan)
Fund shares
Share of on-site Xingquan Herun
zero point nine zero zero
100,000
(No change)
zero point nine zero zero
100000 shares of on-site Xingquan Herun
Share of Horun A
one point zero one zero
100,000
one point one two two two two two two two
(All converted into Xingquan Herun shares)
zero point nine zero zero
112222 shares of on-site Xingquan Herun
Share of Horun B
zero point seven nine zero
100,000
zero point eight seven seven seven seven seven seven eight
(All converted into Xingquan Herun shares)
zero point nine zero zero
87777 shares of on-site Xingquan Herun
Note: The specific conversion result is subject to the registration and settlement institution
5. After Herun A shares and Herun B shares are converted into Xingquan Herun shares, Xingquan Herun shares cannot be traded in the secondary market, and investors can apply for redemption of fund shares on the OTC market or after being transferred to the OTC market. Some investors may not be able to directly handle the redemption on the market due to their securities companies do not have the qualification for fund sales or other reasons, and they need to first transfer custody to the OTC market before applying for redemption or transfer custody to the securities companies with the qualification for fund sales before applying for redemption.
6. According to the relevant business rules of China Securities Depository and Clearing Co., Ltd., the holding period of fund shares is calculated from the date of confirmation of Xingquan Herun shares after the combination or conversion of Herun A shares and Herun B shares into Xingquan Herun shares, The holding period of the converted Xingquan Herun shares held by the holders of Herun A shares and Herun B share funds will be calculated from January 4, 2021. If the holding period is short when redeeming units, the fund unit holders will bear a higher redemption fee.
In accordance with the Provisions on the Management of Liquidity Risk of Open ended Securities Investment Funds by Public Offering and the provisions of the Prospectus of the Fund, the redemption rate of the Fund is as follows:
(1) Off market redemption rate
The redemption fee shall be borne by the fund unit holders who redeem the fund units and collected when the fund unit holders redeem the fund units. The redemption rate decreases with the increase of the holding time of fund units, as follows:
Holding time (T)
Redemption rate
T ＜ 7 days
1.50%
7 days ≤ T ＜ 1 year
0.50%
1 year ≤ T ＜ 2 years
0.25%
T ≥ 2 years
0%
(Note: The holding time of redeemed shares is calculated from the registration date of the shares in the registration agency. One year is 365 days, two years is 730 days, and so on)
The holding period of Xingquan Herun shares transferred from OTC custody to OTC is calculated from the OTC holding date when they are redeemed from OTC.
(2) On site redemption rate
The exchange redemption rate of the Fund is 1.50% within 7 days and 0.50% within 7 days and above.
The redemption fee of the Fund shall be borne by the Fund Unitholders who redeem the Fund units, and shall be charged when the Fund Unitholders redeem the Fund units. The redemption fee charged to investors with a continuous holding period of less than 7 days will be fully included in the fund property; For the redemption fee charged by investors who have held more than 7 days continuously, no less than 25% of the total redemption fee will be included in the fund property, and the part not included in the fund property will be used to pay the registration fee and other necessary handling fees.
The Fund Manager promises to manage and use the Fund assets in the principle of honesty, credit, diligence and responsibility, but does not guarantee that the Fund will be profitable, nor does it guarantee the minimum return. The sales agency classifies the investor category, risk tolerance and risk level of the fund according to the regulatory requirements, and puts forward appropriate matching opinions. Investors should carefully read the fund contract, prospectus (update), fund product information summary (update) and other fund legal documents before investing in the fund, fully understand the risk return characteristics of the fund product, and on the basis of understanding the product situation and the appropriateness opinions of the sales agency, according to their own risk tolerance, investment period and investment objectives, Make independent decisions on fund investment and select appropriate fund products. The Fund Manager reminds investors of the principle of "buyer's responsibility" for fund investment. After investors make investment decisions, investors are responsible for the investment risks caused by changes in the operation status of the fund and the net value of the fund.
Investors can visit our website（ http://www.xqfunds.com ）, or call customer service hotline (400-678-0099021-38824536) for relevant information.
It is hereby announced.
Xingzheng Global Fund Management Co., Ltd
December 23, 2020