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 indicate that their secondary market trading prices are significantly higher than the net asset value of fund shares. Some products have taken measures such as suspending subscriptions or warning of possible temporary trading halts to further strengthen risk alerts. 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 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 be aware of the premium risk. 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 significantly above its net asset value. The fund will suspend subscription (including regular fixed-amount investments) starting 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, it may take measures such as intraday temporary trading halts or extending suspension periods.

Additionally, recently Huatai-PineBridge CSI Korea Exchange KOSDAQ Semiconductor ETF (QDII) has shown a significant premium in the secondary market compared to its net asset value, 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 inflows driven by allocation needs have led to premiums in some QDII products. It should be noted that QDII secondary market prices 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 indicative net asset value (IOPV) and premium rate indicators through trading platforms. When the premium rate is at a high level historically, investors should be aware that it may converge with market changes. Additionally, investors should promptly review announcements related to their 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.

(Edited by: Wen Jing)