The GBA Innovation 100 ETFs are piling up. Southern Asset Management became the only Shenzhen-based fund manager so far to be approved to launch an ETF based on the Greater Bay Area Innovation 100 Index. Another fund manager from Beijing was approved for the same type of ETF fund today, and the two follow GF Fund Management and ICBC-Credit Suisse Fund, which obtained their approvals earlier of the month. Another 10 are awaiting approval.
The Shenzhen Stock Exchange launched two new indexes Tuesday to track innovative businesses in the Greater Bay Area as the central government pushes broadly to enhance financial links in the region, reports Caixin Global.
The two indexes will track listed companies registered or headquartered in the Greater Bay Area and shares traded in Hong Kong, Shenzhen and Shanghai that are qualified for the stock connect program, a cross-boundary investment channel linking China’s mainland stock exchanges and the Hong Kong market.
As part of China’s Greater Bay Area development plan, the launch of the two new indexes is aimed to reflect business performance in the region and diversify investment options, the exchange said.
The Bay Area Innovative 100 index includes 100 companies that are in emerging sectors including advanced manufacturing, services, marine business and other strategic industries. Companies listed by the index need to meet certain criteria such as market value, innovative capacity and market share.
The 10 largest stocks tracked by the index include Tencent Holdings, Ping An Insurance, Hong Kong Exchanges and Clearing Ltd. and China Merchants Bank.
The second, broader new index is the Bay Area Composite Index. Both indexes will start from a base of 1,000 and will track stock performance starting June 30, 2017.