Exchange-traded open-ended funds (LOFs) are set for a major shift in their on-exchange delisting mechanisms. On August 7, the Shanghai and Shenzhen stock exchanges released draft rules for public comment, specifying three types of products that must be delisted. Wind data shows that as of August 7, there were 402 listed LOFs on the market (counting different share classes separately), with a total on-exchange size of approximately 54.97 billion yuan. Among these, the new rules identify about 34 LOFs from QDII and commodity futures categories that are subject to mandatory delisting, with an on-exchange scale of about 24.638 billion yuan.

Within the mandatory delisting list, there are currently 33 QDII LOFs, involving 18 fund companies including E Fund, Hwabao WP Fund, Harvest Fund, China Southern Asset Management, China Universal Fund, and Da Cheng Fund. Two products from China Universal Fund face delisting: 黄金LOF (164701) and 恒生LOF (164705). 黄金LOF, established on August 31, 2011, is one of the earliest QDII funds in China focusing on gold themes, managed by fund manager Le Wujiong. This fund does not directly invest in gold but uses a fund-of-funds (FOF) model, allocating capital to overseas exchange-traded funds (ETFs) backed by physical gold to track gold price movements. As of the end of the second quarter of 2026, the fund's total assets were about 892 million yuan, with fund investments of approximately 814 million yuan, accounting for 91.32% of total assets. Performance-wise, the fund delivered a notable 61.51% return in 2025, benefiting from sustained gold price increases. However, since entering 2026, performance has been under pressure due to a pullback in international gold prices from highs. Recently, gold prices have strengthened again, with spot gold on the London market hitting $4,400 per ounce on August 11, a near two-month high, boosting interest in the fund. Regarding subscriptions, the fund has lowered its subscription cap three times since April: from 10,000 yuan to 5,000 yuan on April 10, then to 500 yuan on April 28, and further to 100 yuan on August 12. On August 14, China Universal Fund announced a suspension of subscriptions and regular investment plans for the fund. Notably, this is the first QDII-type LOF to reduce its subscription limit to 100 yuan and then suspend subscriptions after the new LOF delisting rules were issued.

Another LOF from China Universal Fund, 恒生LOF (164705), is a passive index-based QDII fund tracking the Hang Seng Index, investing in Hong Kong Stock Connect-listed stocks to cover the Hong Kong market. As of the end of the second quarter of 2026, the fund's total size was 348 million yuan. Its top ten holdings include major Hong Kong stocks such as HSBC Holdings, Tencent Holdings, Alibaba Group, China Construction Bank, and AIA Group, with the top ten holdings accounting for over 45% of the total. Performance-wise, the fund has struggled in 2026, with a year-to-date return of -3.97% as of August 13, and an on-exchange fund size of just 43 million yuan. In terms of fund management, original manager Le Wujiong resigned on August 3 due to internal company adjustments, with Dong Jin taking over. According to the new rules, both funds are products that must be delisted within the transition period. It is important to note that the notice provides a sufficient transition period for commodity futures LOFs and QDII LOFs, mandating that they must delist by December 31, 2027, at the latest. During the transition period, risk warnings for these products will be strengthened. After the rules take effect and before delisting, QDII-type LOFs will have their on-exchange abbreviations prefixed with a "*" symbol. Fund managers must also disclose delisting risks and related arrangements at key milestones, reminding investors that they can sell, redeem, or transfer their on-exchange shares to off-exchange via cross-system custody. The relevant funds must submit delisting-related documents to the exchanges by November 12, 2027, at the latest.