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The first batch of seven funds targeting tech stocks, including those set to be listed on China’s Nasdaq-style high-tech board, all blew past their fundraising targets on the first day of sales, pointing to strong investor interest in tapping the new board.
In total, the seven funds attracted 100.3 billion yuan ($14.8 billion) in subscriptions on the first day they were available, according to Caixin’s calculation.
Among the funds, the one that Beijing-based China Asset Management Co. Ltd. began selling on Monday drew 24.5 billion yuan in subscriptions that day, despite a 1 billion yuan upper limit on fundraising for such funds. The oversubscription means that the fund can only take advantage of 4.1% of total subscriptions, making it the most popular mutual fund on the Chinese mainland to date.
The six other funds, each of which aims to raise up to 1 billion yuan, were also oversubscribed on the first day.
Although all of the funds have “science and technology innovation” in their names, they are not limited to only investing in stocks to be listed on the high-tech board. They are also allowed to invest in technology stocks on China’s other boards.