SDIC Silver LOF Trading Suspension: What Investors Need to Know About the 10% Price Limit

On February 1, 2026, SDIC UBS Fund Management (Guotou Ruiyin Jijin Guanli 国投瑞银基金管理) dropped a significant announcement that caught the attention of precious metals investors across China.

The SDIC UBS Silver Futures Listed Open-Ended Fund (LOF) Class A shares — trading under the code 161226 — is getting temporarily suspended.

Here’s what you need to understand about this move, why it matters, and what it means for your portfolio.

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The Problem: Premium Risk Is Getting Out of Hand

• Loss of Capital: Buying at the premium means you pay more than the asset is worth.
• Arbitrage Correction: Market forces eventually push the price back toward the NAV, causing rapid drops.
• Emotional Trading: High premiums often signal a “bubble” driven by hype rather than fundamental value.

The core issue is straightforward but serious.

The secondary market trading price of the SDIC Silver LOF has climbed significantly higher than the actual net asset value (NAV) per share.

When this happens, you’re looking at what’s called a price premium — and it’s getting substantial.

Here’s the real risk:

• Investors buying at these inflated prices could face significant financial losses if the premium ever corrects.
• The fund’s trading structure as a Listed Open-Ended Fund (LOF) allows it to trade like a stock on exchanges, which can sometimes cause the market price to disconnect from the underlying silver futures value.
• This is a classic arbitrage opportunity that often gets exploited — until it doesn’t.

The fund manager sees the risk and is taking action to protect retail investors from getting caught in the crossfire.

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Trading Suspension Details: What’s Actually Happening

The Timeline

Here’s exactly when the suspension kicks in and what comes next:

• Suspension begins: Market opening on February 2, 2026.
• Suspension ends: 10:30 AM on February 2, 2026.
• New trading parameters: When trading resumes, a 10% price fluctuation limit will be enforced.

This isn’t a full halt — it’s a strategic pause designed to stabilize the market and prevent panic selling or panic buying.

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What Happens If the Premium Doesn’t Cool Down?

Here’s where it gets interesting for investors watching closely.

If the secondary market premium doesn’t recede meaningfully on February 2, 2026, SDIC UBS Fund Management reserves the right to escalate protective measures.

This could mean:

• Intraday temporary suspensions — halting trading multiple times within a single trading day to cool down volatility.
• Extended suspension periods — keeping the market closed longer to give the premium time to normalize.
• Public risk warnings — alerting the market to ongoing structural issues with the fund’s valuation.

Translation: The fund manager isn’t messing around here.

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Understanding the LOF Structure and Why This Matters

Before you panic or make a trade, you need to understand why this premium even exists in the first place.

How a Listed Open-Ended Fund (LOF) Works

A LOF is a hybrid instrument:

• It holds underlying assets — in this case, silver futures.
• It trades on a stock exchange like a regular stock, with real-time pricing.
• The fund’s actual value (NAV) is calculated once per day, typically at market close.
• But the trading price updates constantly throughout the trading day.

This disconnect is where the premium comes from.

If lots of investors are buying the SDIC Silver LOF expecting silver prices to spike, the trading price can climb well above what the underlying silver futures are actually worth.

When that happens, you’re essentially paying extra for sentiment, not for silver.

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How to Protect Yourself: Check the IOPV Before You Buy

Here’s the actionable takeaway for any investor considering a position in this fund:

Always check the Intraday Indicative Operational Value (IOPV) before placing a trade.

What’s an IOPV?

• It’s an estimated value of the fund’s holdings updated throughout the trading day.
• It’s calculated based on the real-time value of the underlying silver futures contracts.
• It gives you a rough idea of what the fund’s actual worth is right now, not what people are willing to pay for it on the exchange.

If the trading price is significantly higher than the IOPV, you’re looking at a premium.

The larger the gap, the larger the risk of a price correction slamming you with losses.

Golden rule: Don’t be the person buying at the peak.

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The Broader Context: Precious Metals Volatility

This suspension doesn’t exist in a vacuum.

The precious metals markets have been facing increased volatility recently — silver, gold, and other commodities are experiencing significant price swings.

When underlying assets swing hard, LOF structures can amplify those swings through trading premiums and discounts.

This is exactly why SDIC UBS Fund Management is being proactive with these protective measures.

They’re essentially saying: “We see the risk. We’re shutting this down for a few hours to let things settle.”

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What This Means for Your Investment Strategy

If you’re holding SDIC Silver LOF shares, here’s what you should do:

• Don’t panic sell at market open on February 2. That’s the worst time to exit.
• Wait for the 10:30 AM restart to see how the market reprices the fund with the new 10% limit in place.
• Compare the trading price to the IOPV before making any moves.
• Consider your original investment thesis. Are you still bullish on silver long-term, or were you just riding the premium wave?

If you’re thinking about buying the SDIC Silver LOF, pump the brakes until the dust settles.

Let the premium deflate naturally, then reassess the fund’s value based on actual silver futures prices, not hype.

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The Bottom Line on SDIC Silver LOF Trading Suspension

SDIC UBS Fund Management’s decision to temporarily suspend trading on the SDIC Silver LOF is a textbook example of how fund managers protect investors from structural market inefficiencies.

The 10% price limit, the 10:30 AM restart, and the threat of further measures are all designed to prevent retail investors from buying into a premium that could evaporate.

The key takeaway: Premiums on LOFs can be dangerous.

Always know what you’re actually paying for, always check the IOPV, and always ask yourself if the price premium makes sense given the underlying asset value.

In this case, the market told you it doesn’t — and now the fund manager is reinforcing that message with a trading halt.

Stay sharp, stay informed, and don’t let precious metals trading become a lesson in overpaying for the SDIC Silver LOF.

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References

• SDIC Silver LOF: Fund will be suspended from the opening of February 2 until 10:30 on the same day – Jiemian News (Jiemian Xinwen 界面新闻)
• Official Website – SDIC UBS Fund Management (Guotou Ruiyin Jijin Guanli 国投瑞银基金管理)
• Weekend News Summary: Silver Crashes as Gold Records Largest Drop in 40 Years – East Money (Dongfang Caifu 东方财富)
• Market Announcements and Trading Rules – Shenzhen Stock Exchange (Shenzhen Zhengquan Jiaoyisuo 深圳证券交易所)