China Investment Silver LOF resumes trading and hits the limit down, what to do with the "string" of premium LOFs?
After resuming trading, Guotou Silver LOF hit the daily limit down, with a premium rate still exceeding 45%. Affected by this, several LOFs have a premium rate exceeding 10%, including bond funds. Investors should be cautious when investing in high-premium funds, as they may face losses. Guotou Silver LOF has recently gained high popularity, attracting a lot of attention. The small circulation provides room for speculation, resembling the status of micro-cap stocks
On the second day after the silver price adjustment, Guotou Silver LOF quickly hit the limit down upon resuming trading.
Even after hitting the limit down, the premium rate still exceeded 45%.
Driven by the popularity of Guotou Silver LOF, as of the evening of December 24, there has been a series of LOF announcements regarding premiums. Data shows that there are 14 LOFs with premiums exceeding 10%. Among them, even bond funds are included, which vividly demonstrate the trading attributes of the underlying funds given the volatility of bond funds.
However, as fund companies always remind, investors who blindly invest in funds with high premium rates may face significant losses. Historically, the premium of LOFs always comes to an end after speculation.
Guotou Silver LOF Hits Limit Down
At 10:30 on December 25, 2025, Guotou Silver LOF quickly hit the limit down upon resuming trading.
This directly reversed the situation of hitting the limit up after resuming trading a few days earlier, and finally brought the premium rate of Guotou Silver LOF down to around 45%.
With a persistently high premium rate, Guotou Silver LOF can be said to be the hottest fund recently.
The Alipay page shows that over 2.4 million people have viewed this fund just this week. Considering that this is a LOF, arbitrage relies on brokerage accounts, the actual number of people paying attention may be even higher.
"String" Premiums
With Guotou Silver LOF leading the way, multiple LOFs have shown "string" premiums. On the evening of December 24, premium announcements surged.
Wind data shows that as of December 24, 2025, there are 14 LOFs with premiums exceeding 10%. Among them, the premium of Guotou Silver LOF has exceeded 61%, the premium of Guotou UBS Ruiying LOF has exceeded 31%, and the premium rate of Guotai Junan Commodity LOF has exceeded 28%. Even CITIC Prudential Shuangying LOF, as a bond fund, has a premium exceeding 20%.
It can be seen that these LOFs with high premium rates, except for Guotou Silver LOF which has a daily subscription limit of 500 yuan, mostly have an estimated circulating scale of only a few hundred million, or even less than 100 million.
The smaller circulating scale also provides some space for speculation. This presents a state similar to micro-cap stocks.
At the same time as the adjustment of the Guotou Silver LOF, the Guotou UBS Ruiying LOF and the Guotai Commodity LOF underwent significant adjustments, while the CITIC Prudential Shuangying LOF continued to hit the daily limit "against the trend" after substantial fluctuations. Overall, it presents a trading attribute.
All Good Things Come to an End
Hotspots will shift, and environments will change; the premium of LOF will ultimately return to calm.
Looking at this year, the premium rate of the E Fund Oil LOF surged sharply in April, peaking at over 69%, but quickly converged thereafter, and has not "stirred up waves" since.
Due to relatively small on-market circulation scale, subscription restrictions, and the attention of the market at certain stages, LOF funds occasionally experience high premiums, creating arbitrage opportunities and stimulating speculative enthusiasm.
However, as fund companies always remind, investors who blindly invest in funds with high premium rates may face significant losses. The trading price in the secondary market of funds, in addition to the risk of fluctuations in the net asset value of fund shares, is also affected by market supply and demand relationships, systemic risks, liquidity risks, and other factors, which may expose investors to losses.
Risk Warning and Disclaimer
The market has risks, and investments should be made cautiously. This article does not constitute personal investment advice and does not take into account the specific investment objectives, financial conditions, or needs of individual users. Users should consider whether any opinions, views, or conclusions in this article align with their specific circumstances. Investing based on this is at one's own risk
