China News Service, Beijing, February 23 (Reporter Chen Kangliang) In response to the recent concern about the valuation adjustment of its silver funds, the Chinese listed company State Investment Capital Co., Ltd. (hereinafter referred to as State Investment Capital) issued an announcement on the 23rd that it will continue to urge its holding investment companies to strictly abide by the bottom line of compliance operations, effectively fulfill the main responsibilities, continuously improve risk management capabilities and investor returns, and maintain the stable, healthy and orderly development of the capital market.
Recently, the valuation adjustment of SDIC UBS Silver Futures Securities Investment Fund (LOF, hereinafter referred to as SDIC Silver LOF), a subsidiary of SDIC UBS Fund Management Co., Ltd. (hereinafter referred to as SDIC UBS Fund), a tertiary holding investment company under SDIC Capital, has attracted market attention. SDIC UBS Fund has released a special work plan on related matters on February 15.
According to the plan, SDIC UBS Fund will provide layered compensation to natural person investors affected by the valuation adjustment. Among them, for natural person investors whose amount affected by the valuation adjustment (the part adjusted from -17% to -31.5%) is less than RMB 1,000, the settlement amount will be determined in full based on the actual amount affected (this group of investors accounted for more than 90% of the investors who redeemed on the day).
In response to the above plan, SDIC Capital said that after preliminary calculations, it is expected that the plan will have a certain negative impact on the company's net profit attributable to the parent company in 2026. The amount of the impact will be less than 5% of the company's audited net profit attributable to the parent company in 2024 and will not have a substantial impact on the company's overall business development.
The trigger for this incident stemmed from the plunge in the international silver market. On January 30, COMEX silver futures prices fell sharply, exceeding the Shanghai Futures Exchange’s silver futures price limit. On the evening of February 2, SDIC UBS Fund announced that it had decided to make valuation adjustments for the silver futures contracts held by its funds with reference to the main international market prices of silver futures. Affected by this, the net value of SDIC Silver LOF fell by 31.5% in a single day, setting a historical record for single-day declines in public funds.
The focus of the controversy over the above-mentioned valuation adjustment is that the fund company released the valuation adjustment announcement only after the closing of trading. As a result, investors who submitted redemption applications during the day expected to lose about 17% when submitting the application, but the actual loss after the closing was 31.5%.
Wang Hongying, president of the China (Hong Kong) Financial Derivatives Investment Research Institute, said that SDIC Silver LOF is a futures contract linked to the Shanghai Futures Exchange, and the product itself has certain structural flaws. For investors, they need to understand that this product is different from ordinary funds and is a high-risk fund linked to futures. (over)
