Lessons from the Silver Fund Controversy

Author: Li Haiyuan

“Money successfully refunded! Made a profit!” “Why can’t those who didn’t redeem on February 2nd get a refund? The fund company is treating investors differently.” At midnight on February 26th, the “Guotou Ruixin Silver Fund” mini-program officially launched on the Alipay platform. Some eligible investors successfully applied for settlement funds, but some investors not covered by this settlement expressed dissatisfaction.

Looking back, influenced by fluctuations in international silver prices, Guotou Ruixin Fund adjusted the valuation of the Guotou Ruixin Silver Futures Securities Investment Fund (LOF) (hereinafter referred to as “Silver Fund”). Due to the valuation adjustment causing investor losses and the timing of the announcement being controversial, it sparked widespread public opinion. In response, Guotou Ruixin Fund has been gradually paying settlement funds to small and medium investors holding the Silver Fund through the aforementioned mini-program since February 26th.

Guotou Ruixin Fund can be said to have “succeeded because of silver, failed because of silver.” Thanks to the previous rise in silver prices, the Silver Fund’s size surged in Q4 2025, breaking through 10 billion yuan, reaching its highest level since inception. However, this settlement event not only requires Guotou Ruixin Fund to pay large amounts of settlement funds but also negatively impacts the net profit of its parent company’s shareholders in 2026. Investors lost money, the fund company’s reputation suffered, and shareholders’ net profits were affected—creating a “three-way loss” situation. As the first public offering industry case of a fund company settling with investors, what lessons does this event offer?

Initiation of Settlement Process

“Guotou Ruixin can now refund money!” “Guotou Silver’s differential refund application successful!” “Made a profit!” After days of waiting, some investors successfully received settlement funds from Guotou Ruixin Fund for the valuation adjustment impact on the Silver Fund.

Affected by historic extreme market conditions in the silver market, Guotou Ruixin Fund previously adjusted the valuation of the Silver Fund, which caused dissatisfaction among most investors. To address investor concerns, the fund company formulated a special plan (hereinafter referred to as “the Plan”) for small and medium investors holding the Silver Fund, and completed related procedures via the “Guotou Ruixin Silver Fund” mini-program.

At midnight on February 26th, the mini-program officially launched on the Alipay platform. Beijing Business Daily noted that after entering the mini-program, investors could verify whether they could apply for settlement funds through facial recognition authentication. After confirming the settlement amount and filling in payment details, they could submit the application, with a message indicating that the transfer was expected to be completed within 10 working days.

Specifically, the plan targets individual investors affected by the valuation adjustment (from -17% to -31.5%) and offers two settlement methods. First, for impact amounts below 1,000 yuan, the full impact amount is used as the settlement amount. It is reported that over 90% of investors who redeemed on that day fall into this category. Second, for impact amounts of 1,000 yuan or more, the total settlement is calculated by adding 1,000 yuan plus the excess over 1,000 yuan multiplied by a certain rate.

The calculation shows that for impact amounts between 1,000 and 2,000 yuan, the settlement ratio is 35%; between 2,000 and 3,000 yuan, 25%; between 3,000 and 5,000 yuan, 15%; between 5,000 and 10,000 yuan, 10%; and above 10,000 yuan, 5%.

From the screenshot shared by investor Li Jian (pseudonym), his redemption confirmed on February 2nd was 901.49 yuan, with an impact amount of 190.83 yuan, and the total settlement provided by Guotou Ruixin Fund was 190.83 yuan. For investors with impact amounts over 1,000 yuan, such as Xiao Chen (pseudonym), who confirmed a redemption of 28,851.95 yuan on February 2nd, with an impact of 6,107.35 yuan, the total settlement was 2,010.74 yuan.

If investors disagree with the settlement, the mini-program also indicates that disputes can still be resolved through arbitration or other legal channels as stipulated in the fund contract.

However, some investors are not within the scope of this settlement. For example, “Post-90s” investor Xiao Zhang (pseudonym) bought a silver fund share for 100 yuan on January 27, 2026, and by February 24, had a cumulative loss of 22.82 yuan. But because Xiao Zhang did not redeem the relevant shares on February 2nd, he cannot apply for the settlement.

It should be noted that the scope of the above plan applies to individual investors who redeemed at the net asset value on February 2, 2026 (including those who submitted redemption applications after 3:00 p.m. on January 30, 2026, and before 3:00 p.m. on February 2, 2026), and does not include institutional investors.

Financial commentator Guo Shiliang believes that this settlement plan, to some extent, maintains the fund company’s credibility and brand image, and provides some protection for small investors. However, for investors affected by amounts over 1,000 yuan, further communication based on actual circumstances is necessary. Nonetheless, this move may impact investor confidence in future investments. Improper handling could also pose risks to the fund company’s reputation, potentially increasing future maintenance costs.

Surge in Complaints

Looking back, international silver prices have experienced rollercoaster fluctuations. London silver once fell to $28.29 per ounce in March 2025, then rebounded sharply, surging in Q4 2025 and breaking the $100 mark on January 23, 2026. As silver prices continued to rise, Xiao Zhang also tried to “get in” on silver funds at this time. By January 29, London silver reached $121.65 per ounce, setting a new record.

However, the joy from rising prices was short-lived. On January 30, London silver plummeted, with a single-day drop of 26.42%. The valuation of the Silver Fund was affected accordingly. After the market close on February 2, Guotou Ruixin Fund announced that it would adjust the valuation of silver holdings based on the price movements in major international silver markets. Following this adjustment, the fund’s daily decline on February 2 was revised from -17% to -31.5%.

This valuation adjustment, exceeding the usual limit for daily decline, triggered significant investor dissatisfaction, mainly because the announcement was made after market close, leaving some investors unable to redeem in time, resulting in substantial losses. Some investors questioned why the fund manager did not announce the valuation adjustment on Sunday (February 1) but only after the big drop on Monday (February 2). Others criticized the inconsistency of applying domestic standards when prices rise and international standards when they fall.

Since the valuation adjustment, some investors have used complaint platforms to defend their interests. For example, over the past month, the Black Cat Complaint Platform received more than 180 complaints against Guotou Ruixin Fund. Most complaints point to the unreasonable aspects of the valuation adjustment, with some directly criticizing the fund’s differential treatment of investors—only compensating redeeming investors and not others—claiming unfairness. The disputed amounts are mostly below 10,000 yuan.

For instance, one investor reported, “On February 2, the fund company adjusted the valuation, causing a 31% loss for all holders. Buying the same asset at the same price but only compensating those who redeemed, and not treating all investors equally, is unfair.” This investor’s disputed amount was 2,000 yuan, and he explicitly stated that Guotou Ruixin Fund should not discriminate among investors.

As for why investors who did not redeem on February 2nd are not covered by this settlement, Guotou Ruixin Fund told Beijing Business Daily that the valuation adjustment only affects investors who redeemed at the net asset value on February 2, 2026. Other investors were not impacted by this valuation change. For those who did not redeem on February 2, whether the valuation was adjusted or not, the two-day decline was similar. The valuation adjustment was made to protect the remaining investors who did not redeem on that date.

“From 15:00 Beijing time on January 30 to 15:00 on February 2, COMEX silver fell by 31.5%, while domestic silver futures, limited by the daily price limit of the Shanghai Futures Exchange, declined approximately 31.84% over two days, very close to the international silver futures’ price movements. Therefore, for investors who did not redeem, the fund company’s valuation adjustment on February 2 still reflected the true value of the underlying assets. In the long run, the price fluctuations of silver futures in domestic and international markets are similar,” added Guotou Ruixin Fund.

The fund manager also continued to warn about the premium risk of silver funds and implemented purchase restrictions to temper investor enthusiasm. As of February, Guotou Ruixin Fund issued 14 warnings about the premium risk of Class A shares of the silver fund and announced suspensions and resumption of trading. Since January 28, 2026, the fund has also suspended subscription (including regular fixed investments).