New Delisting Rules Soliciting Opinions, Global Chip LOF Hits Limit Down, Silver LOF Plunges
TechFlow News, August 10, according to Cao Lu, a reporter from Yicai Global, during Monday's early trading session, multiple high-premium LOFs retreated simultaneously. Global Chip LOF hit the lower limit, with the premium rate still as high as 18%; SDIC Silver LOF plunged over 8% intraday, with the premium rate also breaking through 18%.
The market anomalies stemmed from the draft guidelines on new delisting rules for LOFs jointly released by the Shanghai and Shenzhen Stock Exchanges last weekend, which specified mandatory delisting scenarios for two types of products, directly targeting chronic issues such as long-existing high-premium speculative hype, liquidity dry-up of mini funds, and prices being easily manipulated among exchange-traded LOFs. Representatives from Shanghai-based public funds stated that delisting expectations may directly dampen speculative sentiment towards current high-premium QDII and commodity futures LOFs.
