China regulators approve six tech-focused ETFs

China regulators approve six tech-focused ETFs

SHANGHAI : China’s securities regulator approved a batch of six tech-focused exchange-traded funds (ETFs) on Sunday, filings show, opening fresh capital channels into the battered sector.

The China Securities Regulatory Commission (CSRC) gave the green light just two days after receiving applications from asset managers, state media reported.

The approval of the ETFs, including four that invest in Shanghai’s STAR Market, comes as China’s benchmark index hit four-month lows amid gloomy economic outlook. The STAR50 Index lost nearly 15 per cent over the past month.

China’s stock market regulators have vowed to maintain market stability ahead of the politically significant 20th Communist Party Congress, to be held from Oct. 16.

The six newly approved ETFs will be launched by asset managers including Southern Asset Management Co, China Asset Management Co and Bosera Asset Management Co.

Separately, several new types of ETF options will start trading on Chinese bourses on Monday, offering investors new hedging tools.

They include options based on CSI500 ETFs, to be traded on Shanghai and Shenzhen stock exchanges, as well as options based on Shenzhen’s start-up board ChiNext.

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