China has just seen the launch of the first cohort of Beijing Stock Exchange (BSE) index funds, just a year following the opening of the new bourse in the Chinese capital.
On 29 November, a total of eight BSE 50 index funds commenced sale simultaneously, most of which had a maximum fund-raising amount of 500 million yuan.
Chinese fund companies launching their own BSE 50 index funds included E Fund, China Asset Management, GF Fund, Wells Fargo Fund, China Universal Fund, China Southern Fund, Harvest Fund and China Merchants Fund.
The move arrived just following the launch of the “BSE 50 Composite Index” (北证50成份指数) on 21 November – the inaugural index for the BSE. According to state-owned media the BSE 50 Composite is comprised of larger, more liquid and representative stocks on the BSE, including 19 state-level elite new (专精特新) ‘small giant’ enterprises.
The Beijing Stock Exchange commenced official operation on 15 November last year, with the goal of improving access to capital markets for innovative small and medium-sized enterprises (SME) in China.
“The Beijing Stock Exchange will uphold its market positioning as providing service to innovative small and medium-sized enterprises, with a focus on elite new enterprises and ‘small giants’, said an executive from Jiashi Fund (嘉实基金) to state-owned media.
Xu Ming (徐明), chairmen of the Beijing Stock Exchange, said at the opening ceremony for the new bourse that its goal was the “creation of a main front to service innovative small and medium-sized enterprises,” as well as the “expansion of market scope, excavation of market depth, introduction of diversified funds, and development of an excellent operating environment for SME’s.”