Oil and Gas and multiple QDII products trading at premium prices; fund companies strengthen risk warnings

Securities Times Reporter Wang Xiaoqin

As international oil prices fluctuate at high levels, the secondary market prices of multiple oil and gas-related and cross-market QDII products continue to trade at premiums. In response, fund companies have issued frequent risk warnings.

According to announcements, many products have indicated that their secondary market trading prices are significantly higher than the net asset value per share, with some products already taking measures such as suspending subscriptions or warning of possible temporary trading halts to further strengthen risk alerts. Overall, the phenomenon of QDII product premiums has persisted recently, and the scope has expanded compared to before.

Industry insiders point out that, under the combined constraints of quota limits and capital allocation needs, the premium phenomenon for QDII products is continuing temporarily. Meanwhile, as the premium levels remain relatively high, related trading risks are gradually emerging, and investors should maintain rational judgment.

Specifically, Huatai Fund announced that the Huatai S&P Global Oil Index Securities Investment Fund (LOF) is trading at a significant premium in the secondary market, warning investors to pay attention to the risk of premiums. Blind investment could lead to substantial losses. Harvest Fund announced that the Harvest Crude Oil Securities Investment Fund (QDII-LOF) is trading at a price clearly above its net asset value per share; the fund will suspend subscription (including regular fixed-amount investments) from February 3, 2026, with the resumption date to be announced separately. GF Fund also announced that if the premium of the GF S&P Oil & Gas Exploration and Production Select Industry ETF (QDII) does not decline, measures such as intraday temporary trading halts or extended suspension periods may be taken.

Additionally, Huatai-Pbrry’s China Securities Exchange China-Korea Semiconductor ETF (QDII) has recently been trading at a price significantly higher than its net asset value per share, and the fund continues to issue risk warnings regarding premiums.

An industry analyst in Shanghai commented that, under quota constraints, cross-border asset supply is relatively limited, while capital continues to flow driven by allocation needs, leading to premiums on some QDII products. It should be noted that secondary market prices for QDII are more determined by supply and demand, and the premium levels do not fully reflect the performance of the underlying assets. As market conditions change, premiums may converge.

Huatai-Pbrry Fund recommends that investors pay close attention to the following when choosing fund products:

First, focus on the premium level. Investors can check the fund’s net asset value per share (IOPV) and premium rate indicators through trading platforms. When the premium rate is at a high level historically, it is important to understand that it may converge with market changes. Additionally, investors should promptly review announcements from the invested funds, including risk warnings about premiums, temporary suspensions, and adjustments to subscription limits.

Second, investors need to evaluate their own circumstances comprehensively. Huatai-Pbrry Fund states that investment decisions should be based on an overall assessment of risk tolerance, investment goals, and holding periods. Fund investments involve various risks, including market risk, exchange rate risk, and industry concentration risk.

(Edited by: Wen Jing)