Shanghai and Shenzhen Stock Exchanges: Plan to improve the exit mechanism for LOF. Commodity futures LOF and QDII LOF will cease listing by the end of 2027 at the latest.

On August 7, the Shanghai and Shenzhen Stock Exchanges publicly solicited opinions on improving the arrangements for listed open-end funds. The consultation paper clarified that commodity futures LOFs and QDII LOFs should cease listing, and a transition period of more than one year should be set, with the latest date for ceasing listing being December 31, 2027. Additionally, any LOF whose daily on-market net asset value has been below 10 million yuan for 60 consecutive trading days should also cease listing. If an LOF's daily on-market net asset value has been below 10 million yuan for 40 consecutive trading days, the fund manager must report to the exchange and disclose a risk warning announcement that the fund may be delisted before the market opens on the following trading day, continuing to disclose this once every trading day until the situation of the fund's on-market net asset value no longer being below 10 million yuan or until the situation leading to delisting occurs (whichever comes first). The original text is as follows: Notice on Soliciting Opinions to Improve the Arrangements for Listed Open-End Funds Shanghai Stock Exchange Document [2026] No. 2612 To all market participants: In order to promote the standardized development of listed open-end funds (LOF) and protect the legitimate rights and interests of investors, under the overall guidance of the China Securities Regulatory Commission, the Shanghai Stock Exchange (hereinafter referred to as "the Exchange") has drafted the "Notice on Improving the Arrangements for Listed Open-End Funds (Draft for Consultation)" (see attachment). We are now publicly soliciting opinions, and the deadline for feedback is August 22, 2026. Relevant opinions or suggestions can be submitted through the "Public Consultation" column under the "Rules" section on our official website. This is to notify. Shanghai Stock Exchange August 7, 2026 Notice on Improving the Arrangements for Listed Open-End Funds (Draft for Consultation) To promote the standardized development of listed open-end funds (LOF) on the Shanghai Stock Exchange (hereinafter referred to as "the Exchange") and protect the legitimate rights and interests of investors, the following notifications are made in accordance with the "Securities Investment Fund Law of the People's Republic of China", "Measures for the Administration of Publicly-Raised Securities Investment Funds" and the "Rules for the Listing of Securities Investment Funds on the Shanghai Stock Exchange" (hereinafter referred to as "Fund Listing Rules"): 1. The following circumstances fall under the "other circumstances that the Exchange considers should terminate listing" as per the fifth item of Article 33 of the Fund Listing Rules: (1) QDII LOF refers to the LOF raised and established according to the "Measures for the Administration of Domestic Institutional Investors' Overseas Securities Investment" and invested in overseas securities markets using part or all of the fund property. (2) An LOF with a daily on-market net asset value below 10 million yuan for 60 consecutive trading days. The delisting circumstances specified in item (2) above will commence from the effective date of this notice. 2. QDII LOFs should cease listing no later than December 31, 2027. Prior to delisting, the fund's on-market designation should be prefixed with "*". Relevant fund managers shall disclose announcements before the market opens on the effective date of this notice, indicating the risk of delisting and reminding fund share holders of their options to redeem, sell, or transfer shares out of the system, and to make appropriate arrangements for ceasing listing. After confirming arrangements for ceasing listing, fund managers must submit related documents to the Exchange and make an announcement by November 12, 2027, at the latest. If documents are not submitted in accordance with the relevant regulations, the Exchange will terminate the listing of the LOF as per regulations. 3. If an LOF has a daily on-market net asset value below 10 million yuan for 40 consecutive trading days, the fund manager shall report to the Exchange and disclose a risk warning announcement regarding potential delisting before the market opens on the next trading day, continuing to disclose this once each trading day until the situation of the funds daily on-market net asset value being below 10 million yuan is resolved or until delisting occurs (whichever comes first). Should the LOF encounter the circumstance described in item (2) of the first notice, the fund manager is required to report to the Exchange and make an announcement before the market opens two trading days following the occurrence of the event, with the LOF suspending trading from the date of the announcement. The fund manager must submit relevant documents for delisting within two trading days from the announcement date to the Exchange. 4. The Exchange will make a decision on terminating the fund's listing within ten trading days after receiving the documents related to delisting, and will notify the fund manager and announce the decision within two trading days from the decision. Fund managers must disclose the fund's delisting announcement within two trading days of receiving the Exchange's decision, which must include the type of the delisted fund, on-market designation, stock code, date of delisting, reasons, and related arrangements. The managers of commodity futures LOFs and QDII LOFs must disclose a delisting announcement once each trading day for 20 consecutive trading days starting from the date the Exchange announces the delisting decision. The LOF will terminate listing on the trading day following the completion of these 20 trading days. In the case the LOF is terminated from listing under the provisions of item (2) of this notice, it will be delisted within five trading days following the decision. 5. If an LOF simultaneously triggers both conditions for delisting as stipulated in item (1) and item (2) of this notice, the Exchange will terminate its listing according to the principle of "first triggered, first applied". The trigger point for item (1) of the first notice is based on the time at which the fund manager announces the submission of the delisting documents. 6. Fund managers should highlight in the delisting announcement that on-market shares of LOF are still redeemable after delisting. Members of the Exchange should place LOFs publishing delisting announcements in accordance with this notice on a key monitoring list, providing risk warnings to clients through multiple channels such as websites, online trading systems, and market information systems. Members should actively cooperate in notifying clients and encourage them to participate in trading legally and prudently. 7. Fund managers should make sufficient preparations in business and technology, including developing procedures for the delisting process and establishing monitoring and early warning systems for on-market asset values of LOFs. 8. "Below" in this notice does not include the number itself. Continuous trading days specified in this notice include days when the fund is suspended for the entire trading day. 9. This notice shall take effect from [date]. Notice on Soliciting Opinions to Improve the Arrangements for Listed Open-End Funds Shenzhen Stock Exchange Document [2026] No. 1115 To all market participants: In order to promote the standardized development of listed open-end funds on the Shenzhen Stock Exchange (hereinafter referred to as "the Exchange") and protect the legitimate rights and interests of investors, under the overall guidance of the China Securities Regulatory Commission, the Exchange has drafted the "Notice on Improving the Arrangements for Listed Open-End Funds (Draft for Consultation)". We are now publicly soliciting opinions, and the deadline for feedback is August 22, 2026. Relevant opinions or suggestions can be submitted through the "Public Consultation" column under the "Legal Rules" section on our official website. Shenzhen Stock Exchange August 7, 2026 Notice on Improving the Arrangements for Listed Open-End Funds (Draft for Consultation) To promote the standardized development of listed open-end funds (LOF) on the Shenzhen Stock Exchange (hereinafter referred to as "the Exchange") and protect the legitimate rights and interests of investors, the following notifications are made in accordance with the "Securities Investment Fund Law of the People's Republic of China", "Measures for the Administration of Publicly-Raised Securities Investment Funds" and the "Rules for the Listing of Securities Investment Funds on the Shenzhen Stock Exchange" (hereinafter referred to as "Fund Listing Rules"): 1. The following situations fall under the "other circumstances that the Exchange considers should terminate listing" as per the fifth item of Article 23 of the Fund Listing Rules: (1) Commodity Futures LOF and QDII LOF. Commodity Futures LOF refers to an LOF that primarily employs the strategy of holding commodity futures contracts traded on commodity futures exchanges approved by the China Securities Regulatory Commission, aiming to track commodity futures prices or price indices. QDII LOF refers to the LOF established and raised according to the "Measures for the Administration of Domestic Institutional Investors' Overseas Securities Investment" and utilizing part or all of the fund property to invest in overseas securities markets. (2) An LOF with a daily on-market net asset value below 10 million yuan for 60 consecutive trading days. The delisting situations specified in item (2) of this article shall commence from the effective date of this notice. 2. Commodity Futures LOFs and QDII LOFs should cease listing no later than December 31, 2027, and prior to delisting, the fund's on-market designation should be prefixed with "*". Relevant fund managers shall disclose announcements before the market opens on the effective date of this notice, indicating the risk of delisting and reminding fund share holders of their options to redeem, sell, or transfer shares out of the system, and to make appropriate arrangements for ceasing listing. After confirming arrangements for ceasing listing, fund managers must submit relevant documents to the Exchange and announce them by November 12, 2027, at the latest. If documents are not submitted in accordance with the relevant regulations, the Exchange will terminate the listing of the LOF as per regulations. 3. If an LOF has a daily on-market net asset value below 10 million yuan for 40 consecutive trading days, the fund manager shall report to the Exchange and disclose a risk warning announcement regarding potential delisting before the market opens on the next trading day, continuing to disclose this once each trading day until the situation of the funds daily on-market net asset value being below 10 million yuan is resolved or until delisting occurs (whichever comes first). Should the LOF encounter the circumstance described in item (2) of the first notice, the fund manager is required to report to the Exchange and make an announcement before the market opens two trading days following the occurrence of the event, with the LOF suspending trading from the date of the announcement. The fund manager must submit relevant documents for delisting within two trading days from the announcement date to the Exchange. 4. The Exchange will make a decision on terminating the fund's listing within ten trading days after receiving the documents related to delisting, and will notify the fund manager and announce the decision within two trading days from the decision. Fund managers must disclose the fund's delisting announcement within two trading days of receiving the Exchange's decision, which must include the type of the delisted fund, on-market designation, stock code, date of delisting, reasons, and related arrangements. The managers of commodity futures LOFs and QDII LOFs must disclose a delisting announcement once each trading day for 20 consecutive trading days starting from the date the Exchange announces the delisting decision. The LOF will terminate listing on the trading day following the completion of these 20 trading days. In the case the LOF is terminated from listing under the provisions of item (2) of this notice, it will be delisted within five trading days following the decision. 5. If an LOF simultaneously triggers both conditions for delisting as stipulated in item (1) and item (2) of this notice, the Exchange will terminate its listing according to the principle of "first triggered, first applied". The trigger point for item (1) of the first notice is based on the time at which the fund manager announces the submission of the delisting documents. 6. Fund managers should highlight in the delisting announcement that on-market shares of LOF are still redeemable after delisting. Members of the Exchange should place LOFs publishing delisting announcements in accordance with this notice on a key monitoring list, providing risk warnings to clients through multiple channels such as websites, online trading systems, and market information systems. Members should actively cooperate in notifying clients and encourage them to participate in trading legally and prudently. 7. Fund managers should make sufficient preparations in business and technology, including developing procedures for the delisting process and establishing monitoring and early warning systems for on-market asset values of LOFs. 8. "Below" in this notice does not include the number itself. Continuous trading days specified in this notice include days when the fund is suspended for the entire trading day. 9. This notice shall take effect from [date]. This article has been compiled from the official website of the Shanghai and Shenzhen Stock Exchanges, edited by Xu Wenqiang.