The delisting mechanism for listed open-ended funds (LOFs) on the exchange is set for a major overhaul. On August 7, the Shanghai and Shenzhen stock exchanges sought public feedback on LOF delisting rules, clearly defining three categories of products that must be delisted. According to Wind data, as of August 7, there were 402 LOFs listed across the market (calculated separately for different share classes), with a total on-exchange scale of approximately 54.97 billion yuan. Among them, the new rules mandate the forced delisting of QDII and commodity futures LOFs, totaling about 34 products, with an on-exchange scale of roughly 24.638 billion yuan.

Within the forced delisting list, there are currently 33 QDII LOFs, involving 18 fund companies, including E Fund Management, Hwabao Asset Management, Harvest Fund Management, China Southern Asset Management, China Universal Asset Management, and Dacheng Fund Management. Among these, Hwabao Asset Management has three products facing delisting, with a combined on-exchange scale of 2.494 billion yuan and a total fund size of 5.221 billion yuan. These three products are all managed by fund managers Zhou Jing and Yang Yang, with the Overseas Technology LOF also co-managed by Zhao Qiyuan.

Specifically, as of August 12, the Overseas Technology LOF (501312) has an on-exchange fund size of 1.156 billion yuan, with a total fund scale of 2.421 billion yuan and a year-to-date return of 19.18%, showing relatively strong performance. The Hwabao S&P Oil & Gas Exploration & Production Select Sector ETF LOF (162411) has an on-exchange fund size of 1.119 billion yuan, with a total fund scale of 2.007 billion yuan and a year-to-date return of 33.85%. However, it is noteworthy that the fund's cumulative return since inception remains negative. The Hwabao US Consumer LOF (162415) has a latest on-exchange fund size of 219 million yuan, with a total fund scale of 792 million yuan, but its year-to-date return is -3.72%, with a net capital outflow of 48 million yuan since the start of the year, indicating relatively under pressure overall performance.

It is important to emphasize that the notice provides a sufficient transition period for commodity futures LOFs and QDII LOFs, stipulating that the latest delisting date is December 31, 2027. During the transition period, risk warnings for related products will be further strengthened. From the implementation of the rules until delisting, the on-exchange short names of commodity futures LOFs and QDII LOFs will be prefixed with an asterisk (*). Fund managers must also disclose delisting risks and related arrangements at key milestones, reminding investors that they can choose to sell, redeem, or cross-system transfer on-exchange shares to off-exchange. Relevant funds must submit delisting-related documents to the exchange by November 12, 2027, at the latest.