Core Viewpoint - The Japanese stock market has reached a new historical high, leading to significant premiums in the secondary market for ETFs investing in Japan, prompting warnings from fund managers about potential risks associated with these premiums [1] Group 1: Market Performance - On October 21, the Japanese stock market opened higher, setting a new historical record [1] - The Nikkei ETF (513520) experienced the largest increase, with noticeable premiums in the secondary market [1] Group 2: Fund Manager Warnings - The fund manager, Huaxia Fund, issued a notice regarding the significant premium of the Nikkei ETF's secondary market trading price over the reference net asset value [1] - Investors are cautioned about the risks of blindly investing in the ETF, as it may lead to substantial losses [1] - The fund manager reserves the right to apply for temporary trading halts on the Shanghai Stock Exchange if the premium does not effectively decrease [1] Group 3: Economic Factors - The recent rise in Japanese stocks is closely linked to the Federal Reserve's decision to restart interest rate cuts, which lowers funding costs and attracts more capital to Japan's relatively low-valued and stable economic environment [1] - The long-term depreciation of the yen benefits Japan as an export-oriented economy [1] - The Bank of Japan's continued implementation of ultra-low interest rate policies keeps corporate financing costs low, enhancing the stock market's attractiveness [1] Group 4: Political Risks - There are uncertainties regarding political risks, particularly with the recent election of Prime Minister Fumio Kishida, which may affect monetary policy [1] - Analysts suggest that the Bank of Japan may adopt a wait-and-see approach regarding interest rate hikes until new government policies are clearer [1]

Core Viewpoint - The Nikkei ETF (513520) experienced significant trading volume and premium pricing above its net asset value, prompting the management to issue a risk alert regarding the potential for premium pricing risks in the secondary market [1] Group 1: Market Activity - On October 20, the Nikkei ETF opened high and saw increased trading volume, with prices significantly exceeding the reference net asset value of the fund [1] - The management indicated that if the premium pricing in the secondary market does not effectively decrease, they may apply for temporary trading suspension from the Shanghai Stock Exchange to warn the market of the risks [1] Group 2: Risk Factors - The management highlighted that factors such as exchange rates, subscription and redemption limits, and supply-demand imbalances can lead to deviations between the secondary market trading prices and the fund's net asset value [1] - Investors are cautioned that buying in during high premium phases may lead to potential losses if the premium is later reduced [1]