Chinese asset managers get approval to launch STAR Market ETFs

Shanghai, China

China’s securities regulator on Friday approved the first batch of exchange-traded funds (ETFs) that invest in Shanghai’s Nasdaq-style STAR Market.

China Asset Management Co (ChinaAMC), E Fund Management Co and Huatai-PineBridge Fund Management Co said in separate statements on Friday they had received regulatory approval to launch ETFs tracking the benchmark STAR50 index.

The approval for those ETFs tracking some of the country’s most representative tech players in IT, biotechnology and high-end equipment comes at a time when regulators have moved to chill pure speculation in tech-related stocks.

“Compared with investing in individual stocks, ETF investments could lower risks for common investors while providing opportunities for gains along a rising trend,” ChinaAMC said in statement.

China’s tech stocks have seen a sharp correction over the past weeks as investor sentiment took a big hit after state media warned against speculation in poor-performing firms.

The STAR 50 index declined 5.6% for the week, its fifth straight week of losses. It’s down 24% from a record high hit in mid-July.

The correction mitigates risks for the newly-approved ETFs, which will channel fresh money into the STAR Market.

Regulators wanted to guide investors towards more rational investments based on fundamentals, said Fu Yanping, analyst with China Galaxy Securities.

Beijing has accelerated capital market reforms to fund its technology race with the United States, but walks on a fine line between reviving the market and averting bubble risks.

Reuters

Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.