Core Viewpoint - Guotou Ruijin Fund Management Co., Ltd. announced an adjustment to the valuation method for six silver futures contracts held by its Guotou Ruijin Silver Futures Securities Investment Fund (LOF), leading to a significant drop in the fund's net asset value by over 31% in a single day, raising concerns and controversies in the market [2][4]. Valuation Adjustment - The adjustment involves changing the valuation calculation for the six silver futures contracts (AG2604, AG2605, AG2606, AG2608, AG2610, AG2612) to reference the international market prices at 3 PM Beijing time, instead of the previous method based on the Shanghai Futures Exchange settlement price [4]. - Following this adjustment, the A-class share net value dropped from 3.2838 yuan to 2.2494 yuan, and the C-class share fell from 3.2621 yuan to 2.2290 yuan, both experiencing a decline of 31.5% [4]. Reasons for Adjustment - The adjustment was prompted by a significant drop in international silver prices, which exceeded normal fluctuations, while domestic markets were restricted by price limits, creating a disparity between domestic and international prices [5]. - Guotou Ruijin emphasized that continuing to use domestic settlement prices would misrepresent the fund's net value, leading to a "virtual high" perception of asset value [5][6]. Controversy Over Announcement Timing - The timing of the announcement, made after trading hours, has been a focal point of controversy. Guotou Ruijin explained that the international market prices needed for accurate valuation are only available after 3 PM, and that market conditions could change during trading hours [6][7]. - The company expressed concerns that an early announcement could be misinterpreted as an attempt to prevent redemptions, potentially leading to market panic and liquidity issues [7]. Market Reaction - The valuation adjustment led to a rapid response in the secondary market, with the fund's price hitting a trading limit down, closing at 4.722 yuan, while the adjusted net value was only 2.2494 yuan, resulting in a premium rate of 109.92% [8]. - To mitigate risks associated with high premiums, Guotou Ruijin issued a risk warning and announced a temporary suspension of trading for the fund [8].