Hua'an Fund Management unveils planned offer method for open-ended fund

SHANGHAI (AFX-ASIA) - Hua'an Fund Management Co Ltd said its planned open-ended securities fund will have an initial size of 5 bln yuan and will be owned in equal proportions by individual and institutional investors, 

according to Shenzhen's Securities Times.

In an issue plan unveiled by the fund management company recently, each individual subscriber to the open-ended fund must subscribe to units worth a minimum of 10,000 yuan, while each institutional subscriber must buy units worth no less than 300,000 yuan.

Each institution must subscribe to units together worth no more than 500 mln yuan.

If there is sufficient subscriber demand during the initial offer, the fund's initial size will be expanded above 5 bln yuan.

According to the report, Hua'an outlined three possible offer methods for the fund's units, and these include the public offer of a fixed number of units, with subscribers able to buy the units until all have been sold.

Another method is to use a ballot system via the stock market's own channel for carrying out initial public offerings, while another is for the Bank of Communications to register subscribers and carry out a ballot.

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