Among the new fund launches in July, a considerable number of products have extended their fundraising periods.
Wind data shows that based on the initial fund caliber, a total of 161 funds were launched for issuance in July. As of July 31, 30 of them announced extension of the fundraising period at least once, accounting for 18.63%, with a total of 37 extension announcements. If products that started fundraising in June and continued to adjust their fundraising periods in July are included, there were 54 fundraising extension announcements in the month, involving 43 funds.
The extended fundraising products cover multiple types including ETF, active equity, “fixed income +”, FOF and other categories. Among them, 15 are ETFs, accounting for half of the newly issued extended funds in July; some products have extended the fundraising deadline to August, while Huatai-PineBridge CSI Hong Kong Stock Connect Information Technology Comprehensive ETF has extended it to September 30.
30 Newly Issued Funds in July Extended Fundraising, 6 Extended for Multiple Times
In terms of the number of extensions, 6 of the 30 funds have extended their fundraising periods twice or more within July.
Peng Hua CSI Hong Kong Stock Connect Mainland Financial ETF adjusted its fundraising arrangements three times in succession. The fund was launched on July 1, originally scheduled to end fundraising on July 14, after which the fundraising deadline was successively extended to July 21, July 31 and August 7, with the subscription window extended by 24 days compared with the original arrangement.
ICBC Credit Suisse CSI Photovoltaic Industry ETF, ChinaAMC CSI Sub-sector Chemical Industry Themed ETF, China Merchants Guozheng Value 100 ETF, AVIC Xiangyi, and Dacheng CSI All-Index Securities Company ETF all extended their fundraising twice. Taking ICBC Credit Suisse CSI Photovoltaic Industry ETF as an example, the fundraising deadline was first extended from July 17 to July 31, and then to August 7; ChinaAMC CSI Sub-sector Chemical Industry Themed ETF was also extended all the way from the original July 17 to August 7.
Calculated from the original fundraising deadline to the final fundraising deadline, 14 of the 30 funds were extended for no more than 7 days, 8 for 8 to 14 days, 5 for 15 to 30 days, and the remaining 3 for more than 30 days.
Some products extended their fundraising periods at one go. Huatai-PineBridge CSI Hong Kong Stock Connect Information Technology Comprehensive ETF was launched on July 20, originally scheduled to end on July 24, and then extended the fundraising deadline to September 30, 68 days longer than the original plan, making it the fund with the longest fundraising extension time among the funds launched in July.
The fundraising deadlines of GF Wenzhi and BlackRock Industry Rotation Quantitative Stock Selection were both extended from July 31 to August 31, extended by 31 days respectively; Golden Eagle Fengyu was extended from July 31 to August 21.
Among the 30 extended funds, 20 had an original fundraising period of less than two weeks, of which 15 had an original fundraising period of 12 days.
A person familiar with fund sales told a reporter from CLP that the reasons for funds to extend their fundraising periods are not completely the same. Some products were initially set with a relatively short fundraising time, and fund companies will decide whether to extend the subscription window according to the sales progress of channels; some institutional funds require a certain period of time from research, decision-making to final subscription, and extending the fundraising period can also leave room for relevant processes.
ETFs Account for Half, Extended Fundraising Products Cover Multiple Categories
In terms of product types, among the 30 funds launched in July with extended fundraising periods, 15 are passive index funds, all of which are ETFs. A total of 52 passive index funds were launched in July, of which 15 had extended fundraising, accounting for 28.85%.
The 15 ETFs cover broad-based or strategy index products such as ChinaAMC CSI A-Share ETF and China Merchants Guozheng Value 100 ETF, as well as industry-themed products covering photovoltaic, new energy batteries, chemical, securities, cloud computing, medical devices and other sectors, as well as cross-border products for Hong Kong stock internet, Hong Kong stock finance, Hong Kong stock healthcare and Hong Kong stock information technology.
The aforementioned fund sales practitioner said that when the number of ETF issuances is large, products in the same track or with similar indices may enter the issuance period intensively, and channel scheduling, sales resources and investor subscription funds will be dispersed accordingly, so some products require a longer fundraising time.
From the overall structure of newly issued funds in July, passive index funds are the most numerous, with a total of 52; partial equity hybrid funds and secondary hybrid bond funds have 29 and 25 respectively, and hybrid FOFs and partial debt hybrid funds have 16 and 15 respectively. Extended fundraising is not only concentrated in equity products, but also can be seen in “fixed income +” and multi-asset allocation products.
Among non-ETF extended fundraising products, there are 4 partial equity hybrid funds, 2 ordinary equity funds, 3 partial debt hybrid funds and 3 hybrid FOFs respectively, 2 secondary hybrid bond funds, and 1 QDII hybrid fund. Equity products such as AVIC New Energy Industry, Huabao Quality Quantitative Stock Selection, Construction Bank New Talent Quantitative Stock Selection, and BlackRock Industry Rotation Quantitative Stock Selection are all included, and partial debt or secondary bond funds such as GF Wenzhi, Golden Eagle Fengyu, and AVIC Xiangyi also extended their fundraising periods.
The extension ratio of different types of products also varies. 2 of the 6 newly issued ordinary equity funds in July had extended fundraising, and 4 of the 29 partial equity hybrid funds had extended fundraising; 3 of the 16 hybrid FOFs had extended fundraising, and 3 of the 15 partial debt hybrid funds had extended fundraising.
After extending the fundraising period, some products also ended fundraising early according to the sales progress. Wind data shows that among the 161 funds launched in July, a total of 19 announced early termination of fundraising, of which 3 had previously extended their fundraising periods.
Zheshang Huijin Tongli Enhanced once extended its fundraising deadline from July 22 to August 20, and then ended early on July 23; Harvest WenYi Multi-Asset 3-Month Holding ended fundraising early on July 31 after being extended to August 7; E-Fund Youxuan Yingsheng Diversified Allocation 6-Month Holding also ended fundraising early after the extension.
This article is from the WeChat official account “ChiNext Observer”, author: Wu Yuqi, authorized for release by 36Kr.