AIChinese chip ETFs pause trading as they warn of soaring premium risks

With two funds trading at least 30 per cent above net asset values, the large premiums would trigger sell-offs when sentiment turns

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People cross the street beneath a large screen showing the latest stock exchange data in Shanghai. Photo: EPA

Published: 2:41pm, 14 May 2026Updated: 3:59pm, 14 May 2026

Two China-domiciled exchange-traded funds (ETFs) targeting overseas chipmakers warned of investment risks arising from excessive premiums to net asset values and imposed a temporary trading halt, as the record-setting run in tech stocks has spurred Chinese investors to chase the global rally.

Hutai-PineBridge CSI KRX China-Korea Semiconductor ETF, which invests in Chinese and South Korean chipmakers, was suspended from trading for an hour on the Shanghai Stock Exchange on Thursday, citing the risk of outsize gains. Meanwhile, Invesco Great Wall Global Semiconductor Chips Industry Equity Fund also paused dealing for an hour on the Shanghai bourse for a similar reason.

The trading suspensions came after hefty gains left the two funds trading at least 30 per cent above their net asset values, as premiums of such magnitude would trigger sell-offs once sentiment reverses. The frenzy came about amid global euphoria over technology stocks following strong earnings from leading players and robust capital expenditure on AI infrastructure. The Nasdaq 100 index has continued to reach record levels this week while South Korea’s Kospi gauge, dominated by chipmakers Samsung Electronics and SK Hynix, has surged more than 80 per cent this year.

“On top of the changes of net asset values, the fund’s trading price is also subjected to other factors such as the supply-demand relationships on the market, systemic risks and liquidity risks, which all could incur losses for investors,” said Huatai-PB Investments, the money manager of the China-Korea semiconductor ETF, in a statement filed with the exchange. “Investors should watch out for the premium risk from trading on the secondary market.”

The China-Korea semiconductor ETF rose 1.7 per cent to 6.237 yuan in Shanghai after the trading halt, leaving it trading at a 33 per cent premium to its net asset value after an upsurge of 142 per cent this year. The Invesco Great Wall fund slumped 3.1 per cent to 4.289 yuan, narrowing such gap to 41 per cent and paring its gains to 115 per cent in 2026.

The China-Korea chip fund counts Samsung Electronics and Hynix as its biggest holdings, making up 16.5 per cent and 15.6 per cent of the total values, respectively. Chinese AI chipmaker Cambricon Technologies at 8 per cent and Semiconductor Manufacturing International Corp at 6.9 per cent are ranked third and fourth.

.css-1c6uqr6{color:inherit;font-weight:inherit;font-size:inherit;font-family:inherit;line-height:inherit;overflow-wrap:break-word;}With two funds trading at least 30 per cent above net asset values, the large premiums would trigger sell-offs when sentiment turns

With two funds trading at least 30 per cent above net asset values, the large premiums would trigger sell-offs when sentiment turns