Core Viewpoint - The recent extreme fluctuations in the silver market have led Guotou Ruijin Fund Management Co., Ltd. to adjust the valuation of its Guotou Ruijin Silver Futures Securities Investment Fund (LOF) to ensure fair treatment of all investors and avoid "first redemption advantage" [1] Group 1: Fund Valuation Adjustment - The fund's net asset value (NAV) for Class A shares dropped from 3.2838 yuan to 2.2494 yuan, marking a single-day decline of 31.5%, which is a record for public funds [2][3] - The adjustment in valuation method was cited as the reason for the significant NAV fluctuation, which typically follows the daily settlement price of silver futures contracts on the Shanghai Futures Exchange [3] Group 2: Investor Compensation Plan - For individual investors affected by the valuation adjustment with an impact amount below 1,000 yuan, the compensation will be determined based on the actual impact amount, which constitutes over 90% of the redeeming investors [2] - For those with an impact amount exceeding 1,000 yuan, the compensation will be calculated by adding a certain percentage of the amount exceeding 1,000 yuan to the base amount [2] - A mini-program on Alipay will be launched on February 26, 2026, to facilitate the identity verification and claims process for affected individual investors [2]

Core Viewpoint - Recent significant decline in silver prices, with a record drop in the net asset value of the Guotai Asset Management Silver LOF fund, falling from 3.2838 CNY to 2.2494 CNY, a decrease of 31.5% in one day, marking the largest single-day drop in public fund history [1][5]. Fund Valuation Adjustment - Guotai Asset Management announced that the drastic fluctuation in net value was due to an adjustment in the fund's valuation method, primarily influenced by extreme volatility in the international silver market [2][6]. - The fund typically estimates its net value based on the daily settlement price of silver futures contracts on the Shanghai Futures Exchange, which has a ±17% price limit [2][6]. Market Price Discrepancy - Following the valuation adjustment, a significant deviation occurred between the secondary market trading price and the fund's net value, with a premium rate of 109.92% noted after the fund resumed trading [7]. - On February 2, the fund's trading price was locked at 4.722 CNY, while the latest net value was 2.2494 CNY [7]. Silver Market Trends - In early 2025, international silver prices experienced a "high and then low" pattern, initially rising over 40% due to factors such as the Federal Reserve's interest rate cuts and geopolitical risks, with COMEX silver futures prices exceeding 35 USD per ounce [3][7]. - However, by January 2026, market dynamics shifted, leading to a strong rebound in the US dollar index above 109, which pressured precious metal prices, resulting in a 26.83% drop in silver prices on January 30 and a further 6.38% decline on February 2 [8]. Current Silver Price - As of February 3, the spot silver price was reported at 82.48 USD per ounce, reflecting an increase of 4.23% [4][9].

Core Viewpoint - The recent sharp decline in silver prices has led to significant impacts on silver-related funds, particularly the Guotou Silver LOF, which faced a trading halt due to a drop in value, reflecting broader market volatility and investor sentiment shifts [1][3][6]. Group 1: Market Reactions - Guotou Silver LOF resumed trading and immediately hit the daily limit down, influenced by a 17% drop in the main silver futures contract on the Shanghai Futures Exchange [1][3]. - The premium rate for Guotou Silver LOF decreased from 58.64% to 43.8%, indicating a contraction in market confidence [3]. - The domestic precious metals futures market opened with widespread declines, with all main silver futures contracts hitting their daily limit down [3][6]. Group 2: Factors Influencing Price Movements - The price adjustments are attributed to multiple factors, including unexpected changes in monetary policy expectations, a reduction in risk aversion, profit-taking behaviors, and cumulative effects of regulatory measures [3][6]. - The market reacted to geopolitical developments, such as easing tensions in Greenland and signals from the U.S. regarding negotiations with Iran, which contributed to a decline in safe-haven demand for silver [3][6]. Group 3: Fund Performance and Valuation - The net asset value of the Guotou Ruijin Silver Futures LOF is expected to reflect the volatility in silver prices, with significant attention on its upcoming disclosure [4][7]. - The fund's valuation is primarily based on the settlement prices of silver futures contracts, which may not accurately reflect the true market value due to the recent price drops [8]. - The fund management's choice between using the daily settlement price or a more representative value for valuation will significantly impact the fund's net asset value performance [8].