Cross-border ETF faces a frenzy of funds! Multiple ETFs warn of risks, S&P Consumer ETF suspended from trading today.

Recently, the trading prices of several cross-border ETFs in the secondary market have been speculative. As of the close of trading on January 9th, the Saudi ETF (159329) and S&P Consumer ETF (159529) hit the limit up, while the Asia-Pacific Selection ETF (159687) and Germany ETF (159561) had gains of over 9%. The S&P Consumer ETF had a premium of up to 51.82%, and the CSOP Saudi Arabia ETF, Asia-Pacific Selection ETF, and Germany ETF had premiums of over 10%. The turnover rates of the Saudi ETF and Germany ETF were over 1000%, while those of the S&P Consumer ETF and Asia-Pacific Selection ETF were over 700%. The sustained high premiums of cross-border ETFs have attracted market attention, with the Saudi ETF, S&P 500 ETF, Germany ETF, and French CAC40 ETF among others indicating the risk of price premiums in the secondary market. On the evening of January 9th, China Southern Asset Management Co., Ltd. announced that the secondary market trading price of the S&P Consumer ETF was significantly higher than the net asset value of the fund units, resulting in a large premium. Trading in this ETF will be suspended starting from the market open on January 10th, with the resumption of trading to be announced separately. Industry insiders have stated that the high premium rates of cross-border ETFs are influenced by multiple factors. On one hand, changes in interest rates bring global allocation opportunities, leading to increased investor sentiment in buying cross-border products. On the other hand, the relatively small size of cross-border ETFs, limitations on QDII quotas, and factors such as trading hours and exchange rates also play a role. Several industry experts have cautioned that when foreign exchange quotas increase or when overseas markets weaken, investor interest may decline, causing a noticeable cooling off of the high premium phenomenon, and investors who buy in at high prices may incur significant losses in the short term.