Original title: The first batch of 4 MSCI China A50ETFs will be sold starting on the 22nd and the total amount of funds raised will not exceed 32 billion yuan
Our reporter Wang Siwen
It took only 24 days for the first batch of MSCI China A50 interconnection ETFs from product declaration to approval; from product approval to publication of the recruitment letter, it only took 1 day!
On October 19, a reporter from “Securities Daily” was informed that the first batch of 4 MSCI China A50 Interconnect ETF products will be on sale at the same time this Friday (October 22). The sale period is approximately from October 22 to 26. The speed of product issuance is so fast, which shows how much the fund company attaches importance to the layout of MSCI China A50 interconnection ETF.
Following the listing and trading of the MSCI China A50 Interconnect Index futures contract on the Hong Kong Stock Exchange on October 18, the related futures-to-money product MSCI China A50 Interoperability ETF officially announced the issuance of the “schedule”, becoming the public fund ETF market this year. Another landmark event.
The total scale of the first offering does not exceed 32 billion yuan
On October 19, E Fund, China Asset Management, China Universal Fund, and China Southern Fund also issued announcements on the issuance of their MSCI China A50 interconnection ETF products, and the upper limit of the initial offering is 8 billion yuan.
The names of the first batch of approved products are: China MSCI China A50 Interoperability Trading Open Index Securities Investment Fund, Southern MSCI China A50 Interoperability Trading Open Index Securities Investment Fund, E Fund MSCI China A50 Interoperability Trading Open End Index Securities Investment Fund, China Universal MSCI China A50 Interoperability Trading Open Index Securities Investment Fund.
Among them, the upper limit of the combined initial fundraising scale of online cash subscription and offline cash subscription of China MSCI China A50 Interoperable Transactional Open Index Securities Investment Fund is 7.8 billion yuan, and the upper limit of the initial raising scale of offline stock subscriptions is 200 million yuan.
Based on this calculation, the total raised scale of the first four MSCI China A50 interconnection ETFs does not exceed 32 billion yuan. If any fund unit is over-raised on the sale day during the fundraising period, the effective subscription application at the end of the fundraising period will be partially confirmed using the principle of “doomsday ratio confirmation”, that is, the proportion of allotment.
It is worth noting that, through online cash subscription, each subscription share of a single account must be 1,000 or an integer multiple. However, if the offline cash subscription is processed through the fund manager, the minimum subscription unit requirements are different. China Asset Management and China Universal Asset Management have set each subscription unit to be more than 50,000 (including 50,000). The fund and China Southern Fund require that each subscription unit must be more than 100,000 (including 100,000).
From the perspective of issuance time, the issuance time of the four fund products are all from October 22 to October 26. Relevant persons in charge of the first batch of 4 fund companies told the “Securities Daily” reporter that the MSCI China A50 Connectivity ETFs currently under the four public offerings have all prepared promotional materials such as product launch preheating and investor education posters and videos.
Tracking index reveals three major investment highlights
As the global attractiveness of high-quality A-share assets continues to increase, the pace of increasing domestic and overseas funds to “do more in China” is also accelerating. MSCI China A50ETF is an on-exchange product focusing on representative assets of A shares. The tracking targets are all MSCI China A50 Interconnected RMB Index.
“Securities Daily” reporter interviewed the head of the first batch of MSCI China A50ETF Index Investment Department and learned that the index has three bright spots. First of all, MSCI adopted an innovative method in formulating rules this time. It first selects two stocks with the largest market capitalization from various industries that meet the interconnection conditions, and then selects the largest weight from the remaining constituent stocks of the parent index MSCI China A-Share Index , Until the index constituent stocks reach 50.
Second, the distribution of industries covered by the index is more balanced. According to the data, as of the end of September, the top three industry weights of the MSCI China A50 Connectivity Index were food and beverage (15%), electrical equipment (14%) and banking (13%), compared to the Shanghai Stock Exchange 50 Index and FTSE China A50. In the index, industries that belong to the new economy (electrical appliances, medicine, electronics, etc.) account for a higher proportion, while finance accounts for a relatively lower proportion. “The industry distribution of the index is closer to the performance of the A-share market, allowing investors to maintain the neutrality of large-cap stocks when investing in large-cap blue chip indexes. In essence, it can maximize the effect of market value factors.” A MSCI China The proposed fund manager of A50ETF told the reporter of “Securities Daily”.
In addition, the index is an index that characterizes the trend of foreign investment. According to Wind data, as of September 30 this year, 83% of the stocks that are heavily invested by foreign investors (holding more than 0.5% of the market value) have invested in the constituent stocks of the MSCI China A50 Interconnect RMB Index, which demonstrates that they are in line with “smart funds.” “Excellent fit. Whether from an industry perspective or a specific component stock perspective, the index fits the two major development trends of A-share market institutionalization and internationalization.
Since the futures corresponding to this index were listed on the Hong Kong Stock Exchange on October 18, the industry generally believes that futures-to-money linkage provides ETF traders with another means of hedging risks in addition to subscription and redemption.