Ten New CSI A500 ETFs Raise Over $843 million in First Four Days

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Harvest Fund Management Co. Ltd. stands out by hitting its 2 billion-yuan ceiling early and closing its offering ahead of schedule.

The 10 newly approved CSI A500 exchange-traded funds (ETFs) raised a total of more than 6 billion yuan ($843 million) in the first four days of their launch, falling short of their 21 billion yuan-target, with only one fund reaching its 2 billion-yuan goal. The sale has another 11 days to run.

The China Securities Regulatory Commission on Sept. 8 approved the 10 ETFs that track the CSI A500 Index, which in turn tracks the performance of 500 mid-cap companies listed on the Shanghai and Shenzhen stock exchanges.

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Ten newly approved CSI A500 ETFs raised over 6 billion yuan ($843 million) in four days, short of the 21 billion yuan target.
The ETFs aim to track 500 mid-cap companies in Shanghai and Shenzhen, with a symposium promoting further investment.
Features include low fees, a brokerage settlement model, and regular dividend mechanisms; only Harvest Fund hit its 2 billion-yuan target.

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Who’s Who

Harvest Fund Management Co. Ltd.: Harvest Fund Management Co. Ltd. distinguished itself by hitting its 2 billion-yuan ceiling early, closing its ETF offering ahead of schedule. The company has incorporated a mandatory dividend mechanism, promising payouts ranging from 60% to 80% of excess returns when returns exceed the underlying index by the end of each quarter.

Fullgoal Fund Management Co. Ltd.: Fullgoal Fund Management Co. Ltd. is one of the firms managing the newly approved CSI A500 exchange-traded funds (ETFs). It participates in the sale alongside funds from other firms like Huatai-Pinebridge and China Merchants, which are open for sale until Sept. 24. Fullgoal's ETF is among those leveraging the brokerage settlement model and offering regular dividends to attract investors.

Huatai-Pinebridge Fund Management Co. Ltd.: Huatai-Pinebridge Fund Management Co. Ltd. is one of the firms managing the newly approved CSI A500 exchange-traded funds (ETFs). These ETFs track the performance of 500 mid-cap companies listed on the Shanghai and Shenzhen stock exchanges. Their offering is open for sale until September 24 and utilizes the brokerage settlement model for smoother sales and settlement processes.

China Merchants Fund Management Co. Ltd.: China Merchants Fund Management Co. Ltd. is one of the firms managing the newly approved CSI A500 ETFs. Their ETF is among those offering mandatory dividends, distributing 60% to 80% of excess returns over the underlying index each quarter. Despite their participation, Harvest Fund Management Co. Ltd. is the only firm so far to meet its 2 billion-yuan fundraising target ahead of schedule. The ETFs will be available for sale until September 24.

Taikang Fund Management Co. Ltd.: Taikang Fund Management Co. Ltd. is one of the firms managing the newly approved CSI A500 ETFs. Their ETF offers mandatory dividends when returns exceed the underlying index by the end of each quarter. These payouts range from 60% to 80% of excess returns. The ETFs feature low fees, with management fees at 0.15% and custody fees at 0.05%.

J.P. Morgan Asset Management Inc.: J.P. Morgan Asset Management Inc. is one of the fund managers for the newly approved CSI A500 ETFs. Their offering has a feature of mandatory dividends when returns exceed the underlying index each quarter, with payouts ranging from 60% to 80% of excess returns. The ETF also benefits from a low-fee structure, with management fees of 0.15% and custody fees of 0.05%.

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What Happened When

Sept. 8, 2024：: The China Securities Regulatory Commission approved the 10 ETFs that track the CSI A500 Index.

First four days of their launch：: The 10 newly approved CSI A500 exchange-traded funds raised a total of more than 6 billion yuan ($843 million).

Thursday, Sep. 12, 2024：: The Shanghai and Shenzhen stock exchanges held a symposium to promote the ETFs, inviting 80 key institutional players.

AI generated, for reference only

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