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Markets · Fund
China approves 7 funds aiming to invest in upcoming science and tech board
CKN
2019/04/23 06:01:39
2,508
science and technology innovation board; asset management; fund management

Apr 23, 2019 (China Knowledge) - China has approved seven funds designed to invest in companies about to be listed on the upcoming Shanghai Science and Technology Innovation Board.

The seven funds are launched by E Fund Management, China Universal Asset Management, Southern Asset Management, Harvest Fund Management, ICBC Credit Suisse Asset Management, Fullgoal Fund Management and China Asset Management.

The seven funds will feature “science and technology innovation” in their names and will not be only limited to investing in companies on the new board.

According to the China’s fund regulations, funds with “science and technology innovation” in their names are required to have 80% of their assets invested into tech and innovation stocks while funds with “science and technology innovation board” in their names need to invest at least 80% of their assets into the new board.

Regulators in China have set higher standards for individual investors who are looking to invest in the new board due to the higher risks involved. The new board would be testing a Nasdaq-style registration-based system for initial public offerings which would simplify and shorten the IPO approval process.

In addition, companies which are still loss-making or have dual-class share structures will also be allowed to list. Unlike China’s other boards, the new board will have no price-movement limits for the first five trading days for new listings and a higher daily price movement cap of 20%.

To invest in the new board, an individual has to have a daily average balance of RMB 500,000 in their securities account. Those who are unable to meet this requirement will have to conduct their investment through funds.

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