The Shanghai and Shenzhen Stock Exchanges plan to improve the exit mechanism for LOFs, with commodity futures LOFs and QDII LOFs set to be delisted by the end of 2027 at the latest.

The Shanghai and Shenzhen Stock Exchanges are publicly soliciting opinions on improving the arrangements for listed open-ended funds. The draft opinion clarifies that commodity futures LOFs and QDII LOFs should terminate their listings, with a transition period of over one year, and must be delisted no later than December 31, 2027. LOFs with an average daily net asset value below 10 million yuan for 60 consecutive trading days should also be delisted. For small-scale LOFs, a risk warning must be issued daily if the net asset value falls below 10 million yuan for 40 consecutive trading days. Industry insiders estimate that around 125 LOFs may be affected by the delisting, with a total on-exchange scale of approximately 26 billion yuan.