Over the weekend, a record number of exchange-traded funds (ETFs) were approved by regulators. On Friday, five Chinese tech-focused ETFs were launched, putting investor hunger for chipmakers, novel materials producers, and machine tool manufacturers to the test. According to regulatory documents, approval took two days as opposed to weeks for other funds.
Two of the ETFs will invest in the top 50 chipmakers on Shanghai’s STAR Market. The ETFs’ fundraising comes amid a worldwide sell-off in technology stocks as aggressive monetary tightening in the United States dampens risk appetite.
According to Kaiwen Wang, China strategist at alternative asset management business Clocktower Group, the US is attempting to “suppress China’s technical growth and reshore the supply chain of high-tech companies that are essential to US national security.” In recent weeks, the Biden administration has taken new moves to encourage local technology industries and reduce economic dependency on China.