A security guard stands at the Shanghai Stock Exchange building at the Pudong financial district in Shanghai, China, as the country is hit by an outbreak of a new coronavirus, Feb 3, 2020. REUTERS/Aly Song/File Photo
SHANGHAI – A Shanghai-listed fund that holds U.S. stocks took the unusual step of suspending trading on Friday, saying it was necessary to protect investors after prices hit record levels in a scramble for overseas assets.
Trading in the exchange-traded fund (ETF) that tracks the MSCI USA 50 Index was halted for the afternoon session, after a one-hour suspension in the morning failed to reduce hefty price premiums.
“We caution investors of the risks in the secondary market price premiums,” the ETF’s manager, E Fund Management Co said in a statement. “Investors who invest blindly could suffer major losses.”
ETFs trade like stocks on exchanges, with prices determined by supply and demand, but also tethered…
