Shanghai Silver Price Update (Feb 3, 2026): China Silver Fund Revaluation Sparks 31% Shock, Investor Pushback

Silver prices in China were back in sharp focus on Tuesday, February 3, 2026, as a dramatic fund revaluation tied to the domestic futures market triggered renewed volatility and investor backlash. By 03:27:25 pm New York time, Shanghai-linked silver pricing reflected both the aftershocks of a global selloff and a structural reset inside China’s only pure-play silver fund.

Spot silver prices tracked in China climbed intraday toward the CNY 590–593 per ounce range, marking a near-10% daily swing, even as sentiment remained fragile after a sudden 31% net asset value collapse in a flagship silver fund exposed deep cracks in how domestic commodities are priced.

The catalyst was a valuation overhaul by UBS SDIC Fund Management, which altered how its silver futures product is priced and delivered immediate losses to retail investors holding the fund.

Under the revised framework, the UBS SDIC Silver Futures Fund LOF now tracks global silver futures prices instead of relying solely on contracts listed in Shanghai. The switch, which took effect at the start of the week, triggered a record one-day drop of about 31.5% in the fund’s net asset value.

Fund managers said the previous valuation model could no longer fairly reflect asset values as global silver prices fell sharply while domestic futures were constrained by trading limits. Contracts on the local exchange are capped at a 17% daily move, while global futures markets have no such ceiling.

The repricing landed hard. The fund, which manages roughly $2.2 billion, had become a favorite among retail investors during last month’s precious-metals rally. Heavy inflows pushed it to trade at a significant premium to its underlying value — a gap that vanished once global pricing was applied.

Investor pushback was swift. Social media platforms filled with complaints from holders who said the adjustment crystallized losses that had been obscured under the earlier pricing framework. Those attempting to redeem after the reset now face steeper losses than expected.

The adjustment followed a violent reversal in global silver markets late last week, when spot prices plunged more than 25% in a single session, ending a speculative surge driven by geopolitical tensions and monetary policy uncertainty.

Although Shanghai silver prices rebounded intraday, the episode highlighted the growing disconnect between China’s regulated futures market and freely traded global commodities markets. Domestic prices had remained elevated even as international silver markets were already sliding.

For Chinese investors, the revaluation underscores the risks of funds tied to capped local exchanges while tracking assets priced globally. For regulators and asset managers, it raises renewed questions about transparency, valuation fairness, and retail investor protection.

The revaluation came as global silver futures prices slid sharply last week, exposing the widening gap between Shanghai’s capped trading system and freely traded international markets.

Fund managers defended the move as necessary to restore credibility over the long term. But with confidence shaken and volatility still elevated, Shanghai silver prices are likely to remain under close scrutiny in the days ahead.