(Yicai Global) April 23 -- Chinese authorities have approved seven investment funds targeting Shanghai's upcoming science and technology innovation board, meaning ordinary investors can gain access to the market.
The China Securities Regulatory Commission gave the go-ahead to China Asset Management and six other firms yesterday, state-backed online news outlet The Paper reported. They will be the first public funds to trade in stocks from the board.
Prospectuses related to the funds are yet to be released so the investment scope remains unknown. The funds will not only invest in the board but also in tech stocks in existing markets, an insider said, adding they will gradually focus more on the new index as more companies list once it starts up.
Involving greater risks than existing bourses, the board requires investors to have more specialized knowledge. The Shanghai Stock Exchange set a threshold of CNY500,000 (USD74,490) in assets and two years' investment experience to participate. The funds will enable investors who do not meet the requirements to trade indirectly.
Editor: William Clegg