The two firms have already finalized their proposals, which are subject to regulatory approval, to unveil closed-end funds, a practice not seen since 2001 when the market began to embrace open-end funds, according to people familiar with the matter.

"The two firms are deemed as leaders in preparation for innovative closed-end products and are very likely to be in the first batch to launch the funds," said a source close to the Shenzhen Stock Exchange where their funds are set to trade.

The source noted the Shenzhen bourse plans to hold a meeting on Tuesday with brokerages which have fund-sales licenses so that officials from the two firms can introduce their products.

Officials at UBS SDIC Fund Management Co, a venture between UBS and the State Development Investment Corp, were not available to comment. Dacheng Fund Management also couldn't be contacted immediately.

Closed-end funds usually have a fixed number of units sold to investors and trade on bourses like normal shares. They often have a life span of between 10 and 15 years, during which time investments cannot be redeemed.

Open-end funds, which are not publicly traded, pool client capital periodically and invest in equities. Investors can choose to redeem the funds at any time after the initial lock-up period.

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Industry sources noted earlier this year that the new closed-end funds will probably have a shorter life span and will face immediate risks of liquidation if its net value slumps by a pre-set amount.

Other new arrangements will also likely include a mechanism under which an innovative closed-end fund product is divided into two sub funds with one traded on the exchange for "risk-prefer" investors and a non-listed one for "risk-averse" investors, the sources said.

The sources also said the launch of the new closed-end funds may occur late this month or early next month at the earliest although a timetable has not been fixed yet.

China Southern Fund Management Co, one of the country's biggest fund houses, said in March that it was studying a plan to unveil new closed-end funds.

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