Title: E Fund MSCI United States 50 Traded Open Index Securities Investment Fund (QDII) Suspended Due to Premium Risk
On January 29, 2024, E Fund Management Co., Ltd. made an announcement regarding the temporary suspension of the E Fund MSCI US 50 Traded Open-End Index Securities Investment Fund (QDII) secondary market trading. This decision comes after the fund’s trading price in the secondary market significantly exceeded the fund share reference net value, posing a premium risk for investors.
The morning closing price of the fund in the secondary market on January 26, 2024, was 1.532 yuan, reflecting a substantial premium of 42.46% relative to the reference net value of fund shares on that day. As a result, investors are being warned to exercise caution and avoid blind investment that could lead to heavy losses.
In order to protect the interests of investors, E Fund Management Co., Ltd. has decided to temporarily suspend trading of the fund on January 29, 2024, until 10:30 am. Depending on the premium rate, further suspensions may be implemented, and the fund will resume trading at 10:30 am on the same day. The fund manager has assured that the fund is operating normally and will continue to conduct investment operations in compliance with laws, regulations, and the relevant provisions of the fund contract.
E Fund Management Co., Ltd. has issued a risk warning to investors, emphasizing that changes in the net value of fund shares and other factors such as market supply and demand, systemic risk, and liquidity risk can impact the transaction price of the fund in the secondary market, potentially resulting in losses for investors.
Investors are advised to carefully read the fund legal documents and product information summary to fully understand the risk and return characteristics of fund products before making any investment decisions. The fund manager reminds investors that they are solely responsible for investment risks caused by changes in fund operating conditions and fund net value.
The announcement by E Fund Management Co., Ltd. serves as a reminder to investors to exercise caution and conduct thorough due diligence before making any investment decisions.
This article was originally published on the China Finance Network on January 29, 2024.