QDII Funds Hit Record Premiums Amid Fed Rate Hike

Following the Federal Reserve's interest rate hike on September 16, cross-border QDII funds have seen a surge in premiums, reaching as high as 22.15%.

Over the past week, 36 funds have issued frequent premium warnings. On September 22 alone, more than ten fund companies, including Huitianfu, Hua'an, Dacheng, China Merchants, E Fund, Bosera, and Invesco Great Wall, issued concentrated warnings about premium risks.

The premiums on QDII products tracking overseas indices and semiconductor sectors remain persistently high. The technology-growth sector is facing the most pronounced premium risk. Among them, the Invesco Great Wall Global Semiconductor Chip Industry LOF leads the market in terms of premium, with a price of RMB 3.683 compared to its net asset value per unit of RMB 3.0151 on September 18.

The fund was temporarily suspended from trading starting at the open on September 23 and resumed trading at 10:30. However, these risk-control measures failed to fully quell speculative sentiment; after the product resumed trading, its price surged rapidly, with an intraday gain of 1.4% as of 2:00 p.m. that day.