Delisting rules draft for comments, Global Chip LOF hits limit-down, Silver LOF plunges

Odaily News Monday morning, multiple LOFs that had previously traded at high premiums saw a synchronized pullback. Among them, Global Chip LOF hit the limit-down, yet its premium remained elevated at 18%; SDIC Silver LOF plunged more than 8% during intraday trading, with its premium rate also exceeding 18%.

The market volatility may stem from a major regulatory proposal released over the weekend. The Shanghai and Shenzhen stock exchanges jointly issued a draft for public comment on new LOF delisting rules, specifying two types of mandatory delisting scenarios. This precisely targets long-standing market ailments in on-exchange LOFs, including speculative trading at high premiums, liquidity drains in mini funds, and price manipulation vulnerabilities. A public fund practitioner in Shanghai said in an interview that for QDII or commodity futures LOFs currently carrying high premiums, the delisting expectation could directly dampen speculative sentiment. (Yicai)