China Mutual Funds Gear Up for Sci-Tech Board Investment
Xinhua
DATE:  Feb 27 2019
/ SOURCE:  XINHUA

 (Yicai Global) Feb. 27 --  Chinese mutual fund companies are gearing up to invest in the new science and technology innovation board expected to be launched this year.

Nine mutual fund firms, including China Asset Management Co., Harvest Fund Management Co. and ICBC Credit Suisse Asset Management Co., have applied to the country's securities regulator to issue 10 equity investment products for the sci-tech board by Tuesday.

The mutual fund products offer an alternative investment channel for many small investors.According to the draft rules for the board, individual investors need to have at least CNY 500,000 (USD 74,700) in their stock trading accounts and more than 24 months of trading experience to gain direct access to the market.

The asset management firms are optimistic over the size of the funds to be raised through the first batch of equity investment products amid the huge attention on the new board and a market rally of Chinese stocks so far this year.

The new board will focus on companies in high-tech and strategically emerging sectors such as new generation information technology, advanced equipment, new materials and energy, and biomedicine, according to the CSRC. 

The preparatory work to establish the new sci-tech board and introduce the pilot registration-based initial public offerings (IPO) system is underway.It is likely to be rolled out as soon as the first half of this year, according to Shi Donghui, head of the capital market research center with the Shanghai Stock Exchange.

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Keywords:   Mutual Fund,New Product,Sci-Tech Board