After several days of continuous decline, the Internet celebrity fund Global Chip LOF saw a big rebound yesterday. The fund surged by 7.02% on May 20th, with a closing premium rate of 33.88% in the secondary market. Prior to this, the fund experienced significant price fluctuations in the secondary market, with the premium rate reaching as high as 42.46% on May 13th. However, over the following four trading days, the premium rate fell to 22.94%, a decrease of nearly 20 percentage points compared to May 13th. The rapid fluctuations in price have caused some investors distress. Some investors exited early due to the continuous decline in the previous period, missing out on the rebound, while others are concerned that the high premium may lead to increased trading risks. Analysts attribute the significant price fluctuations in the Global Chip LOF to the fund's long-term high premium range, which makes its price highly susceptible to market sentiment. In addition, the weak liquidity of the fund's on-exchange market makes it vulnerable to price fluctuations triggered by fund inflows and outflows. Due to the sustained high premium, the fund has been suspended multiple times recently. On May 21st, the fund will continue its temporary suspension. The fund manager has also issued numerous risk warnings, with 127 premium risk advisory notices released for the fund this year. The fund manager advises investors to closely monitor the risk of premium pricing in the secondary market and make investment decisions prudently, as blind investment could lead to significant losses. Global Chip LOF surged by 7%, pushing the premium rate back above 33%. In recent days, the heat of chip investments has led to a high premium maintained in the secondary market for the Global Chip LOF. As of the market close on May 13th, the fund's closing price in the secondary market was 4.426 yuan, with a premium rate as high as 42.46%. However, over the four trading days from May 14th to May 19th, the Global Chip LOF experienced a continuous decline. As of the closing on the 19th, the fund's closing price in the secondary market was 3.704 yuan, with a premium rate of 23.12%, a drop of nearly 20 percentage points compared to May 13th. On the morning of the 20th, after resuming trading at 10:30, the Global Chip LOF continued to fluctuate downwards, with a drop of over 1.7% at the midday close. The premium of the product also significantly decreased. As of the midday close on the 20th, the latest transaction price of the Global Chip LOF in the secondary market was 3.640 yuan, with the fund's net asset value as of May 18th at 2.9609 yuan, resulting in a premium of 22.94%. However, in the afternoon of the 20th, the product's secondary market trading price quickly rose, closing with a surge of 7.02%, achieving a significant rebound. Data from Oriental Fortune showed that the fund's premium in the secondary market reached 33.88% at the close of the previous day. Certain investors pointed out on social media that the Huatai Bairui China-Korea Semiconductor ETF was suspended on the afternoon of the 20th, leaving some funds unable to buy the product, leading them to trade in the Global Chip LOF, which also contributed to the rise in the fund's price. The significant price fluctuations in the Global Chip LOF in recent days have also caused concerns for some investors. Some investors expressed that this fund rises and falls quickly, while others on social media platforms mentioned that the product had been declining for multiple days, and they sold out due to being unable to withstand the volatility, missing out on the rebound. When analyzing the reasons for the significant price fluctuations in the Global Chip LOF, industry insiders pointed out that the fund's long-term high premium range makes its price highly susceptible to market sentiment. Once the market sentiment weakens, the premium may quickly decrease, leading to price fluctuations in the secondary market. In addition, the on-exchange trading volume of the Global Chip LOF is relatively low, with only three trading days since May seeing a trading volume exceeding one billion. Compared to the daily trading volume of tens of billions for the Huatai Bairui China-Korea Semiconductor ETF, the liquidity of the Global Chip LOF is weak, making fund inflows and outflows more likely to trigger significant price fluctuations. It is worth noting that the Global Chip LOF mainly invests in overseas chip assets, making its net asset value not only influenced by the rise and fall of overseas chip sectors but also by factors such as exchange rate fluctuations, which could amplify price fluctuations. 127 Times of Premium Risk Warnings Issued This Year Due to the high premium, the Global Chip LOF has been suspended multiple times recently. For the 12 trading days from the beginning of May to May 20th, the fund has been suspended from the opening, resuming at 10:30 on the same day. As the premium remains relatively high currently, in order to protect the interests of investors, the fund will continue to be suspended from the opening on May 21st, resuming at 10:30 on the same day. Regarding the high premium of the Global Chip LOF, the fund manager has issued multiple risk warnings. According to Choice data, this year, the fund has released 127 premium risk advisory notices. The fund manager solemnly reminds investors to closely monitor the risk of premium pricing in the secondary market and make investment decisions prudently. Blind investment could result in significant losses. The secondary market trading price of the Global Chip LOF is not only subject to the risk of fluctuating net asset value of the fund but also affected by market supply and demand, systematic risk, liquidity risk, and other factors, which may lead to losses for investors. The fund manager also advises that investors should carefully read the "Fund Contract" and updated "Prospectus" and other legal documents related to the fund before investing. By fully understanding the risk-return characteristics of the fund product, listening to the suitability opinions of the sales organization, and based on one's risk tolerance, investment horizon, and investment goals, investors can make independent decisions and choose suitable fund products. Industry insiders also pointed out that the high premium of the Global Chip LOF is still significant. If there is a downturn in the overseas chip sector in the future, the on-exchange premium may quickly drop. Investors may face the double risk of net asset value decline and premium decline. Additionally, there are still uncertainties in the international situation recently, and the short-term uncertainties in the chip sector have increased. Investors need to be cautious of the risks of chasing high and getting trapped. This article is a reproduction from "Cailianshe", author: Li Di; GMTEight Editor: Feng Qiuyi.