The post China Curbs Silver Fund Subscriptions After 60% Premium Surge appeared on BitcoinEthereumNews.com.

China suspended subscriptions to the UBS SDIC Silver Futures Fund LOF’s Class C shares after its price surged over 60% above underlying silver futures value, driven by social media-fueled retail demand. PBOC officials announced the halt effective Monday to mitigate risks from unsustainable premiums. Fund premium hit 60% amid retail frenzy on platforms like Xiaohongshu. Previous caps cutting subscriptions from 500 to 100 yuan failed to curb demand. Silver fund gained 187% in 2025, outpacing 145% rise in Shanghai silver futures by 42%. China silver fund suspension: UBS SDIC halts Class C subscriptions after 60% premium surge. Discover risks, causes amid silver’s 150% rally. Safeguard portfolios now (152 characters). What is China’s silver fund suspension? China silver fund suspension refers to the UBS SDIC Silver Futures Fund LOF halting new Class C share subscriptions starting Monday, as announced by PBOC officials on Friday. The move addresses a violent price surge pushing the fund’s market value 60% above its silver futures holdings on the Shanghai Futures Exchange. Fund managers cited unsustainable gains and potential for rapid losses if silver prices reverse. What caused the extreme premiums in China’s silver fund? Retail traders, guided by step-by-step posts on Xiaohongshu (Rednote), exploited gaps between exchange-traded units and over-the-counter shares, fueling inflows. The fund hit 10% daily limits for three sessions, prompting UBS SDIC Fund Management Co. to slash Class C subscriptions from 500 yuan ($70) to 100 yuan ($14). Despite a subsequent drop, premiums lingered at 44%, well above December’s 7% average. Managers described demand as unsustainable after earlier risk warnings failed. Frequently Asked Questions Why did China suspend UBS SDIC Silver Futures Fund subscriptions? PBOC officials suspended Class C subscriptions due to the fund trading at over 60% premium to net asset value, exposing investors to sharp downside risks. Social media hype…

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Filed under: News - @ December 26, 2025 9:19 pm