# LOF
Latest news and articles about LOF
Total: 5 articles found
China’s Silver LOF Implosion: How a Pricing Mismatch Turned a Rally into a Record Loss for Retail Investors
A Guotou UBS silver futures LOF plunged after a valuation adjustment that reconciled domestic futures limits with a >30% international silver selloff, producing a record single-day NAV fall of 31.5% and crystallising losses for many retail holders. The episode highlights structural mismatches between international commodity prices and domestically limited futures, the dangers of large secondary-market premiums, and the need for clearer valuation and suitability rules for retail commodity funds in China.
Chinese Silver Fund Plunges into Sixth Straight Limit-Down While Trading at a 34% Premium
Guotou Silver LOF reopened on February 9 and hit the daily limit-down at ¥2.789 while still trading 34.15% above its net asset value, marking a sixth consecutive limit-down session. The episode highlights a severe disconnect between market price and NAV driven by speculative flows, limited arbitrage capacity and thin liquidity, and raises questions about regulatory responses and investor risk in China’s commodity fund market.
China’s Silver-Linked Fund Plunges Into Fifth Straight Limit-Down as Metals Market Unravels
Guotou’s Silver LOF hit its fifth straight limit‑down after trading resumed, with the market quote falling to ¥3.099 and a still‑elevated premium of 28.73%. The collapse reflects a wider silver sell‑off, late NAV adjustments and structural liquidity shortfalls in commodity‑linked funds, prompting probable regulatory scrutiny and calls for reforms in valuation and market‑making practices.
Silver’s Sudden Freefall Rocks Markets as Gold Sheds Safe‑Haven Shine
Spot silver plunged about 15% to below $75/oz while gold fell roughly 3%, triggering sharp falls in Chinese precious‑metals equities and a silver LOF product that hit its fourth straight limit‑down. Officials and market veterans attribute the discordant moves to speculative short‑term flows and silver’s higher sensitivity to sentiment compared with gold. The episode underscores how leveraged, retail‑heavy positioning in a thin market can amplify price moves and create domestic market stress even when gold remains a macro hedge.
China’s Only Silver Futures Fund Plunges 31.5% in One Day as Retail Arbitrage Unravels
Guotou-UBS’s silver LOF plunged 31.5% in a single day after the manager revalued domestic Shanghai silver futures positions by reference to international prices, creating a rush of limit-down selling and exposing a socially-driven retail arbitrage bubble. The fund — China’s only public vehicle tracking silver futures — faces possible further limit-down sessions as investors try to escape a crowded position.