What triggered the Guotou Silver LOF drop?

The manager capped regular investments in Class A shares at 100 yuan, which reduced steady inflows that had supported premiums and creations. As arbitrage demand cooled, liquidity thinned and selling pressure rose. That policy change set off a price reset and contributed to the broader china silver fund plunge investors saw on December 26.

Can Singapore investors buy Guotou Silver LOF directly?

LOF funds are onshore China products. Access is mainly for mainland accounts and eligible channels. Most Singapore investors gain silver exposure via US or Hong Kong ETFs, futures, or miners through local brokers. If you use cross-border routes, check eligibility, settlement, and any quota or subscription limits before placing orders.

How does the 100 yuan cap affect arbitrage?

A cap on regular auto-investments reduces the small, steady buy orders that help keep premiums elevated. Lower premiums weaken the incentive to create new shares, narrowing or flipping the premium to a discount. That compresses China silver arbitrage returns and can speed up unwinds when momentum stalls or funding costs rise.

What should Singapore investors do now?

Review positions tied to silver and miners, note currency exposure, and cut size while liquidity resets. Use limit orders, predefine stops, and avoid chasing early spikes. Read manager notices for any new fund investment limits or dealing changes. Reassess correlations after China’s morning session and scale in only when spreads normalize.

Global Market Insights

China Silver Fund Plunge December 26: Guotou Caps Auto-Invest to Quell Frenzy

ByHuzaifa Zahoor December 26, 2025December 26, 2025

Singapore investors woke to a china silver fund plunge as Guotou Silver LOF tumbled after new curbs aimed at cooling speculation. The manager capped regular investments in Class A shares at 100 yuan, throttling inflows that had fueled arbitrage trades. The move highlights rising policy risk across commodity-themed funds in China. We explain what changed, why flows matter for regional prices, and how to manage exposure from Singapore in SGD terms without chasing volatility or taking on hidden liquidity risk.