Chinese regulators have recently approved four funds focused on China’s new Nasdaq-style STAR Market, according to the official Shanghai Securities News, as fund managers seek to capitalize on China’s push to nurture home-grown tech firms, reported Reuters.
The four funds approved at the beginning of December brings the total number of such funds to 23, adding that nearly 100 more were currently awaiting approval.
The approved funds do not exclusively invest in companies listed on Shanghai’s STAR Market, but are more broadly STAR Market “themed”, also investing in high-tech companies on other domestic boards.
The STAR Market launched in July to a stellar reception that saw some shares rocket as much as 520%. It now comprises more than 50 companies. But valuations of some listed firms have since succumbed to gravity, dropping below their initial public offering prices as a rapidly slowing economy has forced investors to reassess their initial enthusiasm.