A fund company recently issued a notice on adjusting the valuation method of its holdings of bonds, causing public concern about the valuation method of bonds.

Fund companies to guarantee

Experts believe that under special circumstances, when there is no active market for bonds traded on the stock exchange system, it is generally accepted that the fair value of the bonds is generally recognized by the market participants and verified by the actual paction price in the past market.

So, how to determine one?

Experts believe that under special circumstances, when there is no active market for bonds traded on the stock exchange system, the market valuation is generally accepted by the market participants, and the valuation technology is verified by the actual paction price in the past market, so that the bonds can be identified.

Then, how to determine whether an investment variety has an active market? The market generally accepts the definition that active market is usually characterized by high liquidity, low paction price and low price fluctuation.

Sometimes, although there are pactions in the market, but the volume is too small and the price fluctuates too much, this situation may indicate that there is no active market in the investment variety, and the market paction price of the investment variety may not fully represent the securities value generally recognized by the market participants.

At this time, the fund company will carefully judge the fair price of the investment variety when valuing it.