SHANGHAI (Reuters) – Chinese investors are pouring into newly-launched mutual funds targeting Ant Group’s upcoming initial public offering, underscoring strong demand for technology shares at a time when Chinese tech firms are facing increasing U.S. scrutiny.
fintech arm Ant Group aims to raise about $35 billion in a dual listing in Hong Kong and Shanghai’s STAR Market, expected in October, in what could become the world’s largest IPO.
Two of the five new funds launched on Friday to give Chinese retail investors access to strategic stakes in Ant’s IPO had already reached their fundraising target and stopped accepting new investments, their fund managers said.
The five funds are targeting a combined 60 billion yuan ($8.80 billion), with each fund aiming to raise up to 12 billion yuan over a two-week subscription period.
The early interest shows appetite for Chinese tech shares remains strong despite recent stock market corrections.