The first batch of seven themed funds designed to invest in stocks that will be listed on China’s new Nasdaq-style high-tech board were approved on Monday, reported Caixin.
China’s securities regulator set a high bar for individual investors eligible to directly invest in stocks listed on the relatively riskier new board. Ineligible individuals can buy shares through these funds.
The funds are not limited to stocks to be listed on the new board being launched by the Shanghai Securities Exchange. They also can invest in tech stocks on the main boards, the Shenzhen Stock Exchange’s small and medium enterprises board and the ChiNext board of growth enterprises.
Funds with “science and technology innovation” in their names are required to have at least 80% of their assets invested in tech and innovation stocks listed on all boards.