Tracking the Valuation Turmoil of Silver LOF: The Price Drop Halt Was Lifted, Controversy Continues
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The controversy surrounding the "valuation" of China’s first silver fund appears to be entering a more heated and complex phase of competition.
During trading on February 9, GTUB Silver LOF broke the streak of five consecutive limit-down days and opened above the limit. That day, the fund market opened low and moved higher. By 2 pm, GTUB Silver LOF's trading volume surpassed 2.5 billion yuan, ranking among the top two in the product’s history.
While the limit-down was lifted, further debates remain unresolved. Disputes over valuation adjustments, trading suspensions, and premium rates continue to unfold.
Previously, in response to growing public discussion and investor concerns, GTUB UBS Fund issued its latest announcement on the evening of February 6, declaring the establishment of a special task force, actively researching solutions, and supporting investors to resolve their appeals legally through reconciliation, mediation, arbitration, and other channels.
Meanwhile, the company emphasized in the announcement, "fully capable of safeguarding investors’ legitimate rights and interests, and will insist on fair pricing in fund operations and valuations to protect all investors’ legal rights and interests equally." This statement was seen externally as a "strong" stance, indicating there was no need to adjust previous arrangements for Silver LOF.
Investors: From Queuing to Sell to Instant Trades
When Silver LOF broke the limit-down on February 8, resulting in massive transaction volume, it should have come as a relief to all parties.
In the previous five trading days, the fund experienced consecutive limit-downs with small daily trading volumes. On February 6, for example, GTUB Silver LOF (ticker 161226) traded at 3.099 yuan in the secondary market. At the close on February 6, about 740 million units of the silver fund were queued up for sale, with the value of orders exceeding 2.2 billion yuan.
But from another perspective, as of the end of February 6, the fund’s latest net value was only 2.0792 yuan, down nearly 40% from its historic high more than a week prior. Observing the closing price that day, the product’s premium rate was still close to 50%.
Therefore, it was difficult for outsiders to predict which day the limit-down would end, breaking the cycle of limit-down—valuation adjustment—limit-down.
The trading situation on February 9 proved that the market’s premium expectations for Silver LOF remained high.
Wild Swings, Strong Investor Demands
Silver LOF has garnered attention not only due to the recent wild swings in global silver prices but also due to a series of measures taken by the fund company in response to price trends.
On one hand, since early September 2025, global silver prices have departed from the mild trends of the past decade and surged rapidly, with increasingly aggressive rises.
On the other hand, as silver prices rose and the fund repeatedly implemented restrictions on subscriptions and trading suspensions, the secondary market price of Silver LOF soared, with sizeable intraday premiums.
As of January 29, Silver LOF surged to a high of 5.247 yuan within just over a month, increasing more than 240% in the short term (see above).
After the sharp rise, the dramatic volatility and significant pullbacks in silver prices quickly intensified previous accumulated tensions.
On February 3 (actually the evening of February 2), GTUB UBS announced a "reasonable revaluation of Silver LOF assets": using the prices of international main silver futures markets to adjust the valuation of the fund’s domestic futures contracts, this measure was “added” to the valuation of Silver LOF on February 2. That night, Silver LOF’s valuation plunged more than 31%.
This triggered considerable controversy among investors. According to Yicai News, as of February 6, the consumer protection platform alone had received over 17,600 complaints related to the event, involving more than 17,000 investors. Major complaints included "failure to disclose changes in valuation in advance" and "retroactive adjustments harming fairness," among others.
Company’s Latest Announcement “Response”
In response to the recent attention and controversy triggered by GTUB UBS Silver LOF’s valuation adjustment and related announcements, GTUB UBS Fund once again issued an announcement after the close on February 6, directly addressing the concerns.
GTUB UBS’s announcement stated the company will adhere to principles of legal transparency, actively respond to investor demands, strive to minimize the impact of related valuation adjustments on investors, and safeguard investors’ lawful rights. The company has established a task force, which is urgently researching relevant work plans, supporting investors to resolve appeals conveniently through reconciliation, mediation, arbitration, or other legal means. Specific details will be announced separately.
In addition, the company will actively support effective execution of reconciliation, mediation, and arbitration, and is capable of protecting investors’ legal rights, insisting on fair pricing in fund operations and valuations, and fairly protecting all investors’ lawful rights.
The next steps for Silver LOF continue to attract attention.
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