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SHANGHAI, Sept 23 (Reuters) – Five Chinese tech-focused ETFs were launched on Friday, testing investor appetite for chipmakers, new materials producers and machine tool makers amid escalating of the Sino-American tech war and the global rout of tech stocks.
The new batch of exchange-traded funds (ETFs) received regulatory approval at a record pace over the weekend, in an apparent effort by authorities to bolster battered tech stocks ahead of the politically key Communist Party Congress this month. next. Approval took two days compared to weeks for other funds, according to regulatory documents.
Two of the ETFs will invest money in shares of the top 50 chipmakers listed on the Shanghai STAR Market, including Semiconductor Manufacturing International Corporation (SMIC) (0981.HK) and Montage Technology Co (688008.SS).
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Two others will invest in the largest manufacturers of key strategic materials listed on STAR, such as Western Superconducting Technologies Co (688122.SS) and Ningbo Ronbay New Energy Technology Co (688005.SS).
Another new ETF will invest in high-end machine tool makers, such as Avic Aviation High-technology Co (600862.SS).
The ETF fundraising, which ends next Tuesday, comes amid a global sell-off in tech stocks, as aggressive monetary tightening in the United States – including another sharp hike in interest rates by the Federal Reserve on Wednesday – curbs risk appetite. Read more
It also comes amid heightened geopolitical tensions and technology rivalries between China and the United States.
The Biden administration has taken further steps in recent weeks to support domestic tech sectors and reduce economic dependence on China, dragging Chinese biotech and new energy stocks lower. Read more
Competing for technological supremacy over China, the United States seeks to “suppress China’s technological advancements and relocate the supply chain of high-tech industries that are critical to American national security,” Kaiwen said. Wang, a Chinese strategist at alternative asset management firm Clocktower. Band.
Daisy Li, fund manager at EFG Asset Management, said “the whole world has moved from a security-centric approach to a cost-centric approach,” adding that the United States aims to revive its manufacturing industry.
They predicted more Sino-American tensions in the future.
The tech-driven Shanghai STAR Market – which Beijing hopes will fund China’s technological self-sufficiency – has fallen about 30% this year.
The lightened approval of ETFs also comes as securities regulators pledged to maintain market stability ahead of the 20th Party Congress, which will be held from October 16. read more
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Reporting by Samuel Shen, Jason Xue and Brenda Goh; Editing by Ana Nicolaci da Costa
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