Chinese Fund Resumes Trading After Miscalculating Worth
Xu Wei
/SOURCE : yicai
Chinese Fund Resumes Trading After Miscalculating Worth

(Yicai Global) Feb. 13 -- China's SWS MU Fund Management has resumed trading of its Shenzhen Stock Exchange Component Structured Fund after pausing trades on Feb. 11 due to the miscalculation of its net worth.

The Shanghai-based fund manager resumed the fund's trading yesterday. It had suspended trading at 9.34 a.m. on Feb. 11 because staff had miscalculated the fund's net worth the evening prior, according to an emergency statement it issued the same day, which also said the firm would handle the matter in a way beneficial to investors.

Intra-market transactions for the fund's SZSE Component A and SZSE Component B reached CNY408,600 (USD58,500) and CNY3.9 million before suspended was halted, The Paper cited data from Wind as showing. These trades were all conducted at the wrong value, the A fund was priced at CNY1 (14 US cents) instead of CNY1.031, while the B fund was priced at CNY0.1286 instead of CNY0.0976, according to SWS MU.

The Chinese New Year holiday and outbreak of the novel coronavirus from Wuhan are weighing on fund operations, the Asset Management Association of China said. Workers were handling more than 6,000 public funds and other asset management products on Feb. 3, which coincided with the day annuity products must disclose their net worth and the monthly settlement of insurance products.

A manpower shortage, expensive communication, and the need for manual adjustments may also have contributed to the error, it added.

Editor: James Boynton

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Keywords: SWS MU Fund Management