QDII products frequently exhibit premiums; fund companies strengthen risk warnings

Securities Times Reporter Wang Xiaoqin

As international oil prices fluctuate at high levels, several multi-market QDII products involved in oil and gas and cross-market trading continue to trade at premiums in the secondary market. In response, fund companies have issued multiple risk alerts.

According to announcements, many products have indicated that their secondary market trading prices are significantly higher than the net asset value of fund shares. Some products have already taken measures such as suspending subscriptions or warned of possible temporary trading halts to further strengthen risk warnings. Overall, the premium phenomenon of QDII products has persisted recently, and the scope of involved products has expanded compared to before.

Industry insiders point out that, under the combined constraints of quota limits and capital allocation needs, the premium phenomenon of QDII products is continuing temporarily. Meanwhile, as the premium level remains 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) has experienced a significant premium in secondary market trading prices, 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) has a secondary market trading price significantly higher than the net asset value of fund shares. The fund will suspend subscriptions (including regular fixed investments) starting from February 3, 2026, with the resumption date to be announced separately. Fortis Fund also announced that if the premium of the Fortis S&P Oil & Gas Exploration and Production Select Industry ETF (QDII) does not decline, it may take measures such as intraday temporary trading halts or extended suspension periods.

Additionally, recently Huatai-PineBridge CSI Korea Exchange KOSDAQ Semiconductor ETF (QDII) has shown a clear premium in the secondary market price compared to the fund’s reference net asset value, and the fund continues to issue risk warnings about premiums.

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

Huatai-PineBridge 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 reference net asset value (IOPV) and premium rate indicators through trading software. When the premium rate is at a high level historically, it is necessary to understand that it may converge with market changes. Additionally, investors should promptly review announcements related to the invested funds, including premium risk warnings, temporary suspensions, and subscription limit adjustments.

Second, investors need to evaluate their own circumstances comprehensively. Huatai-PineBridge 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.