Public Funds Institutions Alert to Risks of High Premiums for Cross-Border ETFs

Against the backdrop of rising cross-border ETF trading, some products have exhibited significant premiums in their secondary market trading prices compared to the IOPV. On August 7, several public fund institutions issued announcements warning about the premium risk of their cross-border ETFs and implemented temporary suspensions, including the Invesco QQQ Trust and the Huatai-PineBridge China-Korea Semiconductor ETF, among others. According to Wind data, as of August 7, a total of 20 cross-border ETFs had an IOPV premium rate exceeding 5%, with 11 products having a premium rate over 10%, and the highest reaching 24.69%. Multiple fund companies remind investors to closely monitor the risks associated with secondary market trading price premiums and to make prudent investment decisions.