China’s Chengtong Group Commits $83 Million to Digital Economy ETFs
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China Chengtong Holdings Group Ltd., a state-backed investor in the A-share market, has committed 600 million yuan ($83 million) to three newly launched exchange-traded funds (ETFs) focused on the digital transformation of state-owned enterprises.
The move is seen as an effort to bolster market confidence and support China’s industrial policy.
Chengtong’s investment arm, Beijing Chengtong Financial Holdings Investment Co. Ltd., on Tuesday disclosed its strategic subscription to the China Securities Chengtong SOE Digital Economy ETFs. The ETFs, managed by Fullgoal Fund Management, Harvest Fund Management and ICBC Credit Suisse Asset Management, are scheduled to begin trading on May 30, with combined initial fundraising exceeding 2 billion yuan.
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- China Chengtong Holdings invested 600 million yuan ($83 million) in three new ETFs focused on digital transformation of state-owned enterprises, boosting initial fundraising to over 2 billion yuan.
- The ETFs, tracking an index of 50 SOEs in "hard tech" sectors, outperformed the market, returning 21.37% in a year versus CSI 300's 5.60%.
- China Chengtong, with assets exceeding 624.8 billion yuan, has repeatedly acted as a market stabilizer and manages over 1 billion yuan in ETFs.
- China Chengtong Holdings Group Ltd.
- China Chengtong Holdings Group Ltd., established in 1992, is a central state-owned capital operation platform supervised by SASAC. As of September 2024, it reported assets over 624.8 billion yuan. Chengtong is an active institutional investor in China’s ETF market and has played a stabilizing role in financial markets, including supporting listed companies during market turmoil and participating in major state-led acquisitions.
- Beijing Chengtong Financial Holdings Investment Co. Ltd.
- Beijing Chengtong Financial Holdings Investment Co. Ltd., wholly owned by China Chengtong, is an active institutional investor in China’s ETF market. Founded in 2015, it holds over 1 billion yuan in more than 14 ETFs and is the largest shareholder of the CSI Chengtong SOE Tech Innovation ETF. Recently, it committed 600 million yuan to three new digital economy-focused ETFs.
- Fullgoal Fund Management
- Fullgoal Fund Management is one of the three fund managers overseeing the newly launched China Securities Chengtong SOE Digital Economy ETFs, which focus on the digital transformation of state-owned enterprises. The firm participated by managing one of these ETFs and is involved in the combined fundraising that exceeded 2 billion yuan. Fullgoal Fund Management plays a key role in supporting digital economy investments within China's SOE sector.
- Harvest Fund Management
- Harvest Fund Management is one of the managers of the newly launched China Securities Chengtong SOE Digital Economy ETF, which focuses on the digital transformation of state-owned enterprises. The firm not only manages one of the three ETFs but also contributed more than 50 million yuan of its own capital to the ETF it oversees.
- ICBC Credit Suisse Asset Management
- ICBC Credit Suisse Asset Management is one of the managers of the newly launched China Securities Chengtong SOE Digital Economy ETFs, which focus on the digital transformation of state-owned enterprises. The ETFs are set to begin trading on May 30, 2024.
- New Times Securities Co. Ltd.
- New Times Securities Co. Ltd. is a securities firm that was previously linked to Xiao Jianhua’s Tomorrow Holding Co. Ltd. In 2021, China Chengtong Holdings Group Ltd. led a state-owned consortium to acquire a controlling stake in New Times Securities, aiming to stabilize and restructure the company.
- Tomorrow Holding Co. Ltd.
- Tomorrow Holding Co. Ltd. is associated with fallen tycoon Xiao Jianhua. The article mentions that in 2021, China Chengtong led a state-owned consortium to acquire a controlling stake in New Times Securities Co. Ltd., which is linked to Tomorrow Holding. No further details about Tomorrow Holding's operations or background are provided in this article.
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