Recently, the secondary market transactions of many LOF products with small scale and lack of liquidity on the market have been on a "roller coaster", and the prices have skyrocketed and plummeted in multiple trading days.A number of fund companies urgently issued relevant premium risk warnings, reminding investors not to blindly chase highs, otherwise they may suffer large losses.
On July 4, Huabao Fund issued an announcement stating that its Huabao S&P China A-Share Quality Value Index Securities Investment Fund (referred to as "Quality Fund LOF") traded at a large premium in the secondary market, and the trading price was obvious. Deviation from the net value of fund units.On June 30, 2022, the closing price of the Fund in the secondary market was 1.8380 yuan, a premium of 27.96% relative to the fund's net value of 1.4364 yuan on June 30, 2022.As of July 1, 2022, the closing price of the Fund in the secondary market was 1.6540 yuan, and the transaction price was significantly higher than the net value of the fund unit on the previous valuation day.Investors may face greater risks if they buy at the current premium level.
Wind data shows that the quality fund LOF has been performing since June 27.On the two trading days of June 29 and June 30, the trading price of Quality Fund LOF in the secondary market rose by the limit for two consecutive trading days.In the following two trading days on July 1 and July 4, the fund continued to fall by the limit, and the trend of "big rises and big falls" was obvious.On July 5 and July 6, the quality fund LOF fell by 2.69% and 1.17% for two consecutive days, and closed at 1.432 yuan on the 6th.
At the same time, another LOF product, CCB Credit Enhancement (referred to as "Credit Bond LOF"), has also experienced changes in recent trading days. Its secondary market trading price was traded on June 28, 29 and 30. Continuous daily limit.On the following two trading days, July 1 and July 4, the fund experienced a continuous limit-down under the state of high premium.On July 5, the LOF of credit bonds closed down 7.29%, and the closing price on that day was 1.526 yuan.On July 6, the credit bond LOF fluctuated and closed flat.
Overall, the scale of the two LOF funds is not large.Wind data shows that as of July 6, the market share of credit bond LOF funds was 2,026,700, and the market share of quality fund LOF funds was 2,291,500.In terms of liquidity, the overall daily turnover of the above funds is not high.Taking July 6 as an example, Wind data shows that the turnover of credit bond LOF and quality fund LOF on that day was 319,900 yuan and 722,300 yuan respectively.
The abnormal performance of the secondary market of LOF funds has also triggered a surge in the premium rate.For these two LOF funds, the fund company has continuously issued warning announcements about premium risks.Some funds even took measures to temporarily suspend trading for an hour.
On July 1, CCB Fund issued an announcement stating that the transaction price of its CCB Credit Enhanced Bond Securities Investment Fund Class A fund shares in the secondary market showed a large premium, and the transaction price was significantly deviated from the net value of the fund shares.And this is also CCB Fund's announcement of the premium risk warning for this product since June 30.
Specifically, the announcement shows that on June 29, 2022, the closing price of the Fund in the secondary market was 1.8470 yuan, which was a premium of 20.88% compared to the fund's net value of 1.5280 yuan on June 29, 2022.As of June 30, 2022, the closing price of the Fund in the secondary market was 2.0320 yuan, and the transaction price was significantly higher than the net value of the fund unit on the previous valuation day.In addition, the fund also issued an announcement on the suspension and resumption of trading on the same day. Trading will be suspended from 9:30 on July 1, 2022 to 10:30 on the same day, and will resume trading from 10:30 on July 1, 2022.
Industry insiders said that the change in the market price of this LOF product is likely to be caused by financial speculation.In particular, products with small scale and small transaction volume are more likely to cause changes.There has been a similar phenomenon in the stock market before, that is, looking for varieties with the least arbitrage mechanism and the least liquidity in the market to hype, in order to attract unknown investors.If an investor sees a sharp rise in price and buys at a higher price without clearing the reason for the rise, it is easy to bear the loss.Experts also suggest that investors who do not understand LOF products should be more familiar with the relevant trading rules before buying, and do not blindly chase highs.
