New ChiNext ETFs Attract 100 Billion Yuan

Since there are account size thresholds for trading on the Star Market, new ETFs give small investors exposure. The initial success of these funds shows speculative interest is alive and well with small Chinese investors. SCMP: Small investors likely to steer clear of Star Market ETFs as bubble concerns grip China’s Nasdaq

He can access the biggest companies trading on Shanghai’s new technology board, or the Star Market, as four asset-management firms start marketing the first batch of exchange-traded funds (EFT) tracking the board’s most valuable constituents this week. While the minimum subscription is only 1,000 yuan (US$148), Chen is wary of the one-year-old market because of its excessive valuation and wild trading.

“The valuation is too stretched and that’s probably why some mega listings keep falling after the start of trading,” said the 42-year-old Shanghai native. “That’s quite worrisome to me. There seems to be lots of speculative funds playing in this market.”

The tepid response from Chen underscores a setback for money managers who expect China’s 170 million small investors to be exposed to the 2.9 trillion-yuan Star board through their mutual-fund products. Like Chen, who has a 100,000 yuan stock portfolio, most individual investors are not qualified for trading on the Star market, as direct access to the tech board needs at least 500,000 yuan in dedicated stock accounts.

iFeng: 1000亿！见证历史！今天，科创50ETF彻底刷屏

A single day sells 100 billion! The first batch of Kechuang 50ETF's first fundraising ended successfully!

Below are the ads for the four ETFs.