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Reporter Du Meng

Today, Saudi Arabia ETF (159329.SZ) under China Southern Fund and Saudi Arabia ETF (520830.SH) under Huatai-PineBridge were listed on the Shenzhen Stock Exchange and Shanghai Stock Exchange respectively. Both ETFs opened with a big increase, and China Southern Saudi Arabia ETF (159329.SZ) even hit the daily limit after opening in the afternoon.

As of the closing, Southern Saudi ETF (159329.SZ) and Huatai-PineBridge Saudi ETF (520830.SH) both hit their daily limit, with transaction volumes of 2.838 billion yuan and 2.058 billion yuan, respectively, premium rates of 6.18% and 6.31%, respectively, and turnover rates of 426.42% and 331.88%.

The so-called premium means that the current price of the ETF on the market is higher than the IOPV (intraday price in the secondary market), and the discount means that the current price of the ETF on the market is lower than the IOPV. When the current price of the ETF is different from the IOPV, that is, when there is a price difference, there is room for arbitrage. IOPV is the real-time market value of all holdings of an ETF during trading hours. It is calculated and updated every 15 seconds by the exchange or other institutions, usually index companies, as a reference for investors to buy, sell or redeem fund shares.

The shares were bought at a premium on the first day of listing. Huatai-PineBridge Fund issued a warning notice on premium risk during today's intraday trading hours. The notice stated that as an exchange-traded open-end fund, investors can trade in the secondary market, and can also subscribe and redeem the fund. Investors are advised not to invest blindly, as they may suffer heavy losses.

Behind the high premium is the arbitrage of some investors. "The risk of trading individual stocks is too high now, and this newly listed ETF is most suitable for speculation and arbitrage. First make some small money on T+0 in the market, hype up the market, and when the market price is pushed up, you can sell it and leave." In some investment gold-digging groups, tutorials on how to speculate on ETFs are widely circulated.

From the perspective of investment value, the scarcity of investment targets has also become one of the reasons why Saudi ETF has attracted much attention. Huatai-PineBridge Fund believes that the listing of Saudi ETF not only opens up a convenient index-based cross-border investment channel for domestic investors, but also helps promote financial cooperation between the two places and promote the diversification of global asset allocation.

Today, Huatai-PineBridge Saudi Arabia ETF's cross-listed product, CSOP Huatai-PineBridge CSI 300 ETF, was also listed on the Hong Kong Stock Exchange. This Hong Kong-listed CSI 300 ETF will be cross-listed with Huatai-PineBridge CSI 300 ETF, with at least 90% of its assets invested in the latter. Public data shows that the listing price of CSOP Huatai-PineBridge CSI 300 ETF is HK$7.8, with an initial issuance size of 51.1 million yuan. As of today's close, the ETF's on-site trend is relatively stable, with an increase of less than 1%.

In addition, the Southern Saudi ETF also has a "partner" cross-listed product in the Hong Kong stock market, namely the Southern MSCI China A50 ETF (03003.HK), which rose 0.46% today.

Huatai-PineBridge Fund Management said that from the perspective of trading efficiency, the cross-listing format effectively reduces the complexity of cross-market transactions and helps to reduce investment costs; at the same time, more than 90% of the product is invested in the target ETF, supporting the exchange's T+0 trading mechanism, which can effectively improve capital liquidity; in addition, it is convenient for managers to use QDII quotas to participate in market transactions, or avoid various inconveniences such as the number of trading days and time zone differences, and is also conducive to controlling tracking errors.