Multiple ETFs Indicate that on the First Day of Changxin Technology's Listing, the ETF Net Asset Value May Deviate from the IOPV

Odaily Planet Daily News On the eve of Changxin Technology's listing, several ETF fund managers, including China Asset Management and Harvest Fund, issued reminder announcements. Some of their ETFs participated in the IPO of Changxin Technology and valued it at the issuance price. However, the Indicative Optimized Portfolio Value (IOPV) of the ETF only includes the issuance price of Changxin Technology and does not account for its market price fluctuations. Therefore, on the first day of Changxin Technology's listing, the ETF's IOPV may differ from the fund's net asset value. Investors are advised to be aware of the related investment risks.

In response, a source from an ETF fund manager explained that currently, fund companies generally participate in ETFs' IPO subscriptions alongside active equity funds. The ETF's IOPV is strictly calculated based on the PCF list, and restricted shares, such as new shares, which are not constituent stocks, are not included. A significant price surge on Changxin Technology's listing day would cause the actual net asset value of the participating ETFs to be slightly higher than the IOPV, indicating a deviation. In this scenario, a potential arbitrage strategy involves buying the ETF while hedging with derivatives, retaining only the excess exposure from the deviation. (China Securities Journal Jin Niu Zuo)