China’s securities regulator has given the nod to the first four exchange traded funds to track Shanghai Stock Exchange’s Nasdaq-style Star Market, reported the Financial Times.
China Asset Management, E Fund Management, Huatai-PineBridge Fund Management and ICBC Credit Suisse Asset Management received approval from the China Securities Regulatory Commission last Thursday for their respective Star 50 ETF and feeder fund strategies, according to separate announcements made by the firms.
The ETFs will be the first to track the newly launched Science and Technology Innovation Board 50 Index, dubbed the SSE Star 50 Index which was incorporated jointly by the Shanghai bourse and China Securities Index a year ago following the board’s trading debut last July.
The Star 50 Index consists of the 50 largest stocks listed on the Star Market that have also passed certain liquidity requirements. Constituents will be weighted by float-adjusted market capitalization, which generally serves the purpose of reflecting market trends because it only takes into consideration the shares that are available for trade.