BEIJING, June 29 (Xinhua) -- Another batch of exchange-traded funds (ETFs) tracking the CSI STAR&CHINEXT 50 Index, an index composed of the best stocks of China's two Nasdaq-style boards, have been approved by the Chinese securities regulator, reported Securities Times Tuesday.
The approval, following issuance of the first batch of ETFs tracking the index on June 21, came along with approval of the first batch of index funds also tracking the CSI STAR&CHINEXT 50 Index recently.
The Index, whose 50 constituents are selected from the listed emerging industries companies with relatively large market capitalization (market cap) on China's STAR Market and ChiNext market, the two Nasdaq-style boards in China, is to measure the performance of the emerging industries securities in the two markets.
As fund firms are generally optimistic about the performance of the index, many of them are actively developing fund products tracking the index.
Later in July and August, the newly-nodded batch of ETFs tracking the CSI STAR&CHINEXT 50 Index will be issued.
"We have obtained the official approval document about our index fund tracking the CSI STAR&CHINEXT 50 Index and plan to issue the product in mid July," said a market player with a fund firm.
As the first batch of ETFs tracking the index completed issuance in late June, issuance of the second batch of products is mostly arranged in August.
At present, competition on China's ETF market is severe and there are many products focusing on hot sectors, said market players, adding that under such circumstances, it is difficult for innovative products to grow their sizes.
By far, some of the first batch of nine ETFs tracking the CSI STAR&CHINEXT 50 Index have been gradually established and they altogether are expected to have raised more than 15 billion yuan of capital, reported the newspaper.
Among the nine ETFs tracking the CSI STAR&CHINEXT 50 Index, part of them are planned to start trading on exchanges from early July.
In a long period in the future, the CSI STAR&CHINEXT 50 Index-related investment products are likely to remain one of the most favorite sectors for investors as component stocks of the index represent the new direction of sci-tech innovation in China, said analysts with Xingyin Fund Co., Ltd.
Generally, the valuation of China's A-share sci-tech firms are not low, but in a longer time span, there are still some quality targets that have long-term investment value in the sci-tech sector, said a fund manager. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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