Hong Kong
Odaily
Hong Kong Council Warns Tokenized Fund Secondary Trading May See Significant NAV Premiums or Discounts
- The IFEC highlighted that tokenized fund units traded on secondary markets can diverge substantially from the fund's actual net asset value, creating risk of overpaying or underselling.
- The warning emphasizes that unlike direct subscription/redemption with a fund manager at NAV, secondary market trades are subject to supply-and-demand dynamics that can produce large premiums or discounts.
- Investors are advised to carefully assess liquidity, trading venue, and pricing mechanisms of tokenized funds before buying or selling on secondary markets.