Holders of Xingye Securities Investment Fund are set to approve on July 14 te first close-end fund conversion to an open-end fund, implying close-end fund is coming to an end in China, which may bring some short-term negative effects, as reported by The Standard.   China China’s new fund managers have long been shielded by close-end funds because they don’t stand ready to redeem or issue shares on a continuous basis. Therefore. New fund managers are free from redemption risks and stabilized the country’s fund market at its infancy.   According to The Standard, Xingye Fund set some terms to encourage investors to hold their funds longer in order to prevent a possible rush of redemptions. Investors who sell their holdings back to the fund before November 14 should pay a 3 percent redemption fee and those selling within two years from November 14 would pay 0.2-1.5 percent. 's closed-end funds currently have a combined net asset value of about 130 billion yuan. But steps by regulators and the funds themselves are likely to mitigate any negative effect from redemptions, analysts said. “Xingye Fund will set an example for closed-end funds, which may gradually disappear from the market by choosing to convert into open- end funds,” said Zhou Lin, an analyst at Huatai Securities to The Standard.