Daiwa Asset Management told the Tokyo Stock Exchange on September 25 that its iFreeETF China Greater Bay Area Innovation 100 (ticker 2629) closed a day earlier at a market price of ¥4,707, some 29.7% above the fund's ¥3,627.6 net asset value per unit.
| Metric | Value |
|---|---|
| Net asset value per unit | ¥3,627.6 |
| Market closing price | ¥4,707 |
| Divergence | 29.7% |
| Next creation-eligible date | October 13 |
The manager attributes the gap to a halt in ETF creation, the process by which securities firms apply to Daiwa for new units, which adds supply to the market. With buying demand apparently outrunning that supply, the market price has pulled away from the value of the fund's underlying holdings.
Daiwa notes that creation or redemption activity normally pulls an ETF's market price back toward its net asset value, but the fund's next creation-eligible date is October 13. Until then, the manager says the divergence between price and value may continue, and it is telling investors to watch the gap closely before trading.
The notice does not say how large the gap might grow before October 13 or predict what happens to the price once creation resumes; it only flags the mechanism that is currently switched off.