BEIJING, Feb. 4 (Xinhua) -- A total of 10 fund firms obtained on February 2 approval documents from the Chinese securities regulator to establish the first batch of 10 exchange-traded funds (ETFs) tracking the CSI A50 Index, reported Xinhua-run Shanghai Securities News on Saturday.
They, including E Fund Management Co., Ltd., Fullgoal Fund Management Co., Ltd., Yinhua Fund Management Co., Ltd., Ping An Fund Management Co., Ltd., Dacheng Fund Management Co., Ltd., and Hwabao WP Fund Management Co., Ltd., among others, are likely to bring, via issuance of the 10 ETFs, new capital for China's stock market.
Public data showed that component stocks of the CSI A50 Index have been favored by mutual funds and northbound investors under the Shanghai-Hong Kong and Shenzhen-Hong Kong Stock Connect schemes.
By the end of December 31, 2023, market capitalization of component stocks of the CSI A50 Index held by northbound investors already amounted up to 804.6 billion yuan.
Su Huaqing, fund manager with the quantitative investment department of Fullgoal Fund Management Co., Ltd, said that in January, frequent and hefty purchases of broadly-based ETF products by large funds brought up part of the broadly-based stock indexes.
Optimistic about the future performance of underlying stocks of CSI A50 Index, Su noted that alongside the recovering economic growth momentum and foreseeable debut of related preferential policies, the CSI A50 Index is expected to further boost performance of the A-share market.
CSI A50 Index is an indicator measuring the performance of the most representative companies in each industry and selects 50 securities with largest market capitalization from the industry leading companies. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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