The白银基金LOF (161226) has finally halted its streak of limit-down declines. Following five consecutive days of sharp losses last week, during which the fund plummeted over 40%, many investors were left deeply concerned.
Today, however, brought a dramatic reversal. After hitting the limit-down threshold in early trading, the fund was rapidly bid up, closing the day with a significant gain of 8.36%. The intraday volatility exceeded 18%. By the close, the premium bubble had re-inflated, with the premium rate climbing back above 60%. On a positive note, investors seeking arbitrage opportunities were able to exit their positions safely.
This recent frenzy surrounding the白银基金LOF has exposed numerous unforeseen issues, affecting not just investors but also the fund management company and distribution platforms, with problems emerging one after another.
Reports indicate that collective complaints about the incident on a single consumer protection platform have already surpassed 17,600.
JD Financial's instant redemption service, which typically allows for redemptions of up to 80% of the value, was overwhelmed. This led to the absurd situation where investors ended up owing money to the platform.
Here is the latest on the event's developments.
- Part 1 - Following the five limit-down sessions, SDIC Essence Fund issued an urgent response. Last Friday evening, the once "star fund" faced significant market skepticism and a flood of investor complaints.
SDIC Essence Fund urgently released an announcement reiterating its serious attention to issues arising from the fund's valuation adjustment. Most importantly, the company has established a special task force to urgently research and formulate solutions to mitigate the related impacts.
The announcement clarified that SDIC Essence will support investors in resolving their claims through various channels such as settlement, mediation, and arbitration. It emphasized the company's "ability to protect the legitimate rights and interests of investors," with specific plans to be announced separately.
As the market's only LOF tracking silver futures, this fund is highly unique and has long traded at a premium. In 2026 alone, the fund issued 25 premium risk warnings, 19 trading halt/resumption notices, and purchase limit announcements, repeatedly cautioning investors about the risks.
However, this matter involves broad and complex connections.
- Part 2 - JD Financial Caught in the Crossfire, Investors End Up "Owing Money" " I intended to redeem my fund to stop losses, but instead of receiving money, I ended up owing JD Financial over 300 yuan!"
Last week, the白银基金LOF's single-day plunge of 31.5% triggered a chain reaction, unexpectedly ensnaring JD Financial.
An investor holding the白银基金LOF through JD Financial attempted to cut losses by redeeming on February 2nd. Using JD's "Instant Redemption" service, they redeemed 854.60 units, receiving 2,224.83 yuan the same day, with the funds advanced by JD Financial.
However, after the day's official net asset value was confirmed, the redemption proceeds for those units amounted to only 1,900.15 yuan. Facing a difference of 324.68 yuan, JD Financial, unwilling to absorb the loss, had to request the investor return the excess amount. This created the scenario of an investor "owing money" to the platform.
JD Financial's "Instant Access" service promises that funds sold before 3:00 PM on a business day will be available the same day, typically covering 80%-90% of the value, with the money going directly into a "Liquid Assets+" account for immediate reinvestment.
Therefore, JD Financial advanced the payment based on 80% of the previous day's NAV. The白银基金LOF's 31.50% NAV crash on February 2nd stunned JD Financial, breaching the platform's risk buffer. They had no choice but to seek reimbursement from the investor.
A "single-day crash of 30%" was clearly beyond JD's expectations. The platform had anticipated maximum daily declines within 10%, hence the 20% safety cushion. A 30% overnight drop in a fund's NAV is indeed a rare event.
To manage risk, JD Financial has urgently lowered the instant redemption ratio to 60%.
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