The Shenzhen Stock Exchange (SZSE) published the instructions for major traders of listed open-end fund (LOF) to further promote development of the LOF business and to facilitate investors' participation in fund trading.

Implementation of the instructions is expected to enhance the fluidity of LOF trading, raise the trading efficiency, reinforce the function of securities companies in fund market, and accumulate some precious experience for future innovations in other products and trading.

Under the instructions, to become a major LOF trader, a fund manager must meet some specific requirements, including qualifications of fund commission agents granted by the China Securities Regulatory Commission (CSRC), being qualified securities companies approved by the CSRC, sound internal control and risk prevention systems, and other qualifications required by the SZSE.

Source: Shenzhen Daily-Agencies