(Yicai Global) May 27 -- Chinese regulators have given the green light to five more funds designed to invest in companies about to list on Shanghai's upcoming Nasdaq-style trading board.

Each is capped at CNY1 billion (USD144.9 million) and can make strategic placements in companies headed for the Science and Technology Innovation Board. That means their investors will have priority to buy shares before any initial public offerings.

The authorities approved the funds today. They were launched by HuaAn Funds, GF Fund Management, Wanjia Asset and Fullgoal Fund, which owns two of them.

The authorities hope to launch the new trading venue, which aims to make it easier for Chinese tech startups to go public, in the first half of this year. Applications from would-be listers have been accepted since March 13. Final systems checks will be carried out early next month, the Securities Times reported today.

Because the latest funds approved can make early placements, all of the second tranche are three-year closed-end funds. Just one of the seven in the first batch, issued by ICBC Credit Suisse Asset Management, has such a limitation.

Judging by subscriptions to the first batch, investors are less keen on the closed-end investment model. The placement ratio for six open-ended funds ranged from 4 percent to 9 percent, while for the closed-end funds it reached 22 percent. That means CNY1 million (USD144,894) in subscription funds can buy CNY220,000 in fund shares. The lower the ratio, the higher the participation.