LOF has hit the limit down! Insiders say the investment risk is high.

As of the noon close on December 25th, Guotou Credit Suisse Silver Futures hit the downward limit after continuous upward limit. This downward limit was anticipated by the industry. Bi Menghan, a researcher at Ge Shang Fund, told reporters that the core purpose of adjusting the fund's limit was to "cool down" arbitrage sentiment. "The limit for A shares has been raised from 100 yuan to 500 yuan, aiming to increase the supply of onshore shares and guide arbitrage funds to sell onshore through off-exchange purchases, thereby stabilizing the premium. "After the limit for A shares was relaxed on November 22, arbitrage funds actively subscribed for shares, which can be converted into onshore shares on a T+2 basis, consequently these funds are eager to cash in. Arbitrage activities are likely to reduce the high premium, leading to a fall in onshore prices. Despite the significant increase in performance of this fund in the past month, investment risks are also substantial," said some industry insiders.