A Shenzhen Nasdaq tech ETF closed 41.6% above the value of its stocks and will halt at Monday's open

Invesco Great Wall Fund Management will halt the Invesco Great Wall Nasdaq Technology Market-Cap Weighted ETF, ETF:159509, at the open on Monday, Nov. 9, and resume trading at 10:30 a.m. Shenzhen time. Friday's close was 2.813 yuan, against an indicative value of 1.9860 yuan the manager published for that same close, 41.6% above that value.

The same halt had already run before every Shenzhen session this week. On Oct. 30 the close was 3.005 yuan and the indicative value was 2.2277 yuan, a premium of 34.9%, Invesco Great Wall reported. From that close to Friday the indicative value of the holdings fell 10.8% and the share price fell 6.4%, so the premium widened from 34.9% to 41.6%.

The halt is older than this week. Invesco Great Wall posted the same warning on Sept. 30, on Oct. 16 and on Oct. 23, and halted trading from the open until 10:30 a.m. each of those days after the price closed well above the indicative value.

Redemptions continued through each halt. The notices also say investors can subscribe and redeem, and that the actual status is in the latest announcement.

The trading price, those notices say, can move with the balance of buyers and sellers, with how easily the shares trade, and with conditions in the wider market, not only with the value of the holdings.

The manager warned that buying without regard to the premium can mean a large loss, and that it can halt the fund again during the day if the premium does not come in.

ETF:159509 tracks the Nasdaq-100 Technology Sector Market-Cap Weighted Index, not the Nasdaq-100. The Shenzhen fund that tracks the Nasdaq-100 is Huaan Fund Management's Huaan Nasdaq-100 Exchange-Traded Open-End Index Securities Investment Fund, ETF:159632.

Huaan said that fund closed Friday at 2.340 yuan against an indicative value of 2.0233 yuan for that same close, a premium of 15.7%. It set the same Monday halt, with redemptions continuing.

The 41.6% and the 15.7% are each a closing price against an indicative value published for that same close. For ETF:159509, Invesco Great Wall's documents say the figure is calculated during the Shenzhen session from the latest trades in the U.S. stocks and the exchange rate, and that it can differ from net asset value.

Invesco QQQ Trust, Series 1, QQQ, is Invesco's own Nasdaq-100 fund in New York. Invesco Great Wall, which runs ETF:159509, is a separate Shenzhen joint venture that Invesco partly owns.

Friday's close for QQQ was $656.10, against a net asset value of $656.55 struck after the stocks had finished trading. The Shenzhen indicative values were struck earlier, at 3 p.m. Shenzhen time, 2 a.m. in New York, before the U.S. session opened. The New York shares finished 0.07% below net asset value.

The Shenzhen Nasdaq-100 fund closed 15.7% above its indicative value. The one in New York closed on the value of its stocks. On ETF:159509, this week's halts left the price 41.6% above the indicative value, wider than the 34.9% at the Oct. 30 close.