Brokerages Issue Intensive Warnings About the Risks of Cross-Border ETFs
The hype surrounding cross-border ETFs has attracted the attention of regulators and market participants, leading to increasing concerns over abnormal trading behavior and high premiums.
The Shanghai and Shenzhen exchanges have been closely monitoring abnormal transactions of cross-border ETFs with high premiums. The Shanghai Stock Exchange, from January 22 to January 26, focused on monitoring funds with higher premiums such as E Fund MSCI US 50 ETF.
Brokerages have also issued warnings on cross-border ETF trading risks to customers. According to the regulatory office, the recent abnormal fluctuations in cross-border ETFs have led to the issuance of relevant risk warnings to brokers when monitoring warning lines are reached.
In response to the high premiums of cross-border ETFs, E Fund has increased the single-day cumulative subscription limit to alleviate the high premium of secondary market transactions.
A spike in cross-border ETF transactions has been observed, with the rising premiums being attributed to the current good trend of overseas stock markets and restrictions on foreign exchange quotas. However, investors are being cautioned to be wary of these increased risks and urged to make investment decisions cautiously.
In light of these developments, brokerages have been issuing intensive warnings on abnormal trading risks for cross-border ETF products. Many securities firms have notified customers through various channels, indicating the trading risks of certain ETF products.
The Shanghai and Shenzhen Stock Exchanges have been focusing on monitoring a number of cross-border ETFs, with plans to take severe measures to maintain market order and prevent trading risks.
In conclusion, with the recent increase in cross-border ETF transactions and premiums, market participants are advised to exercise caution and make rational investment decisions amid the heightened risks associated with these products.
(Source of article: Financial Associated Press)