Seven fund companies will each soon launch a fund to invest in tech-related stocks including those listed on China’s Nasdaq-style high-tech board, opening up the new board to a larger pool of individual investors.
The funds were approved by the China Securities Regulatory Commission on Monday. One company will begin selling its fund on April 26, with the rest beginning on April 29.
Each fund is allowed to raise up to 1 billion yuan ($149 million), and the minimum purchasing amount of the funds will be set at either 1 yuan or 10 yuan.
China’s top securities regulator has set a high eligibility threshold for individual investors hoping to directly invest in stocks listed on the relatively riskier new high-tech board. Ineligible individuals can buy shares through these funds.
As all the funds have “science and technology innovation” in their names, their investments are not limited to stocks to be listed on the new high-tech board. They are also allowed to invest in tech-related stocks on Shanghai’s and Shenzhen’s main boards, as well as Shenzhen’s SME and ChiNext boards.