The fund has issued another 'purchase restriction order'. Since the end of September, with the significant recovery of the market, investors' enthusiasm for participating in equity assets has been high. Data shows that broad-based index products, including the CSI 300 ETF, CSI 100 ETF, and CSI 50 Component Index, which are powerful tools for investors to track market trends, have frequently issued "purchase restrictions". Industry insiders say that the frequent "purchase restriction orders" are mainly aimed at ensuring the liquidity and stability of funds, as well as preventing market fluctuations and component stock arbitrage caused by large subscriptions, in order to maintain the normal operation of funds and protect the interests of investors. The reporter noticed that since October, products tracking broad-based indices such as the Beijing Stock Exchange 50, Shanghai and Shenzhen 300, Science and Technology Innovation Board 100, Shanghai Stock Exchange 50, and China Securities 500 have successively announced purchase restrictions. Specifically, on October 31st, Southern Fund announced that in order to protect the interests of fund shareholders, the Southern and Northern 50 Component Index has suspended large-scale subscriptions starting from October 31st, with a limit of 5000 yuan. On the same day, Boshi Fund also announced that the Boshi Beizheng 50 Component Index Initiating Form would suspend subscription from November 1st. Recently, there have been frequent restrictions on the purchase of Beizheng 50 component index products. According to incomplete statistics from Securities Times reporters, the Wanjia Beizheng 50 Component Index has a purchase limit of 50000 yuan since October 22, the Huitianfu Beizheng 50 Component Index has a purchase limit of 30000 yuan since October 30, the China Europe Beizheng 50 Component Index has a purchase limit of 10000 yuan since October 30, and the Huaxia Beizheng 50 Component Index has a purchase limit of 20000 yuan since October 28. Some products have reopened their subscription after a brief pause, but still have a limit on the subscription amount. On November 2nd, Fuguo Fund announced that starting from November 4th, the purchase amount for the Fuguo Beizheng 50 Component Index will be limited to 100000 yuan. It is worth noting that the fund was originally scheduled to suspend accepting subscriptions from October 30th. Coincidentally, China Merchants Fund also announced on October 22 that it would suspend the subscription of China Merchants CSI 50 Component Index Initiated Fund. On October 28th, the fund resumed subscription, but at the same time, a daily limit of 1000 yuan per fund account was still imposed. In addition, products that track the Shanghai and Shenzhen 300 Index, as well as related products that track broad-based indices such as the Science and Technology Innovation Board 100, Shanghai Stock Exchange 50, and China Securities 500, are also subject to limited purchases. Reducing the risk of fund volatility: In response to the recent frequent issuance of "purchase restrictions" on broad-based index products, a market insider from a leading public fund in Shanghai analyzed to Securities Times reporters that the reasons for the purchase restrictions are mainly reflected in multiple aspects. Firstly, the ability to undertake is an important consideration for purchasing restrictions. When investors' large subscription requests exceed the liquidity of the fund, the fund company may restrict subscriptions to ensure that these transactions can be undertaken. For example, some small cap stock index products may face the risk of price fluctuations when faced with large inflows of funds, so purchase restrictions can effectively prevent the market from getting out of control. Secondly, the issue of liquidity cannot be ignored. Due to the recent high trading enthusiasm of investors, some products have seen large purchases, which may lead to drastic fluctuations in the price of the underlying asset, thereby affecting the overall performance of the fund. By implementing purchase restrictions, fund companies can control the amount of subscriptions and maintain market stability. Furthermore, the possibility of component stock arbitrage is also one of the considerations for the purchase restriction measures. When there are arbitrage opportunities for constituent stocks in the market, arbitrageurs may use a large number of subscription index products to manipulate prices. Purchase restrictions can reduce the occurrence of such operations, protect the interests of ordinary investors, and ensure that funds operate in a fair market environment. In addition, transaction limit is also an important factor. Some index products may have trading limit restrictions set in their fund contracts to avoid affecting investment strategies due to excessive capital inflows. The purchase restriction announcement helps fund management companies operate within these restricted limits, ensuring that they do not exceed controllable limits. In the view of the above-mentioned individuals, in the face of market uncertainty, fund companies choose to implement purchase restrictions as a risk management measure aimed at reducing potential losses caused by market fluctuations. This strategy not only protects the interests of fund holders, but also provides guarantees for the normal operation of the fund. ETFs have become a powerful tool for tracking market trends. In recent times, the performance of the equity market has been sluggish, and many investors have been continuously buying bottom out of confidence in the future development of the stock market. Among them, broad-based ETFs are the main force for bottom fishing. During this process, the size of broad-based ETFs grew rapidly. Data shows that from the release of the heavyweight policy on September 24th to November 1st, the number of ETFs listed on domestic exchanges has increased from 990 to 1005, and the total size has also increased from 2.87 trillion yuan to 3.52 trillion yuan. The scale of some broad-based index products has also been rising steadily. Taking Huatai Bairui Shanghai and Shenzhen 300 ETF as an example, as a representative stock ETF product, the management scale of this ETF has achieved a leapfrog growth in the past year. On August 7, 2023, the size of Huatai Bairui CSI 300 ETF exceeded 100 billion yuan; On March 12, 2024, its scale once again exceeded the 200 billion yuan mark; On September 24, 2024, the scale of this product exceeded 300 billion yuan, becoming the first ETF in the public offering industry with a scale exceeding 300 billion yuan. On October 8th, the scale of the product once again exceeded 400 billion yuan, reaching a historic high. In addition, several broad-based ETFs, including the Huaxia SSE 50 ETF and Huaxia SSE Sci Tech Innovation Board 50 ETF, have also surpassed 100 billion yuan in size. The scale of the "100 billion club" of broad-based ETFs continues to grow. Industry insiders point out that as market volatility intensifies, ETFs have gradually become an important tool for investors to track market trends. Its transparent investment structure and lower management fees have led more and more investors to choose ETFs for asset allocation. At the same time, the rapid surge in ETF size reflects the market's recognition and demand for this product. In the current economic environment, ETFs not only provide investors with diversified investment choices, but also enhance market liquidity, becoming an important tool for prudent investment. (New Society)