Chinese tech companies planning to list on the mainland are set to receive a multibillion-dollar boost, reports Reuters, after the government approved the launch of six mutual funds aimed specifically at the high-profile flotations.
The three-year lock-up open-ended funds will be allowed to become “strategic investors” in the upcoming listings of companies such as Xiaomi, Alibaba Group and JD.com, to which Chinese investors currently only have limited access to.
The fundraising target for each fund is up to RMB 50 billion ($7.8 billion), according to the Shanghai Securities News. The funds will be managed by a mixture of state-backed and private mutual fund houses such as China Southern, Harvest and China Merchants Fund.
