First batch of 8 Beijing Stock Exchange 3-month holding period funds approved, some set launch dates

By Reporter Zhao Mingchao

The Beijing Stock Exchange (BSE) is poised to receive a fresh wave of capital inflows, supported by the recent approval of new themed funds and the relaxation of subscription limits on existing index products.

New Products Entering the Market

The first batch of eight BSE-themed funds with a three-month holding period has recently received regulatory approval, according to sources familiar with the matter. Some of these products have already confirmed their launch dates.

The fund managers involved include:

• China Asset Management
• China Universal Asset Management
• E Fund Management
• Southern Fund
• Harvest Fund
• Dongcai Fund
• Fullgoal Fund
• CSC Fund

These BSE-themed funds are actively managed equity products that primarily invest in stocks listed on the BSE, with a minimum investor holding period of three months.

Launch Details

• E Fund BSE Preferred Three-Month Holding Period Hybrid Fund will be offered from September 14 to 24, with a fundraising cap of RMB 500 million. Equity assets will account for 60% to 95% of total assets, and at least 80% of non-cash fund assets will be invested in BSE-listed stocks.

• Fullgoal BSE Select Three-Month Holding Period Hybrid Fund will begin offering on October 8, also with a fundraising cap of RMB 500 million.

Industry Perspective

Zhu Haibin, an analyst at Kaiyuan Securities, noted that the introduction of three-month holding period funds represents a significant innovation in the operational mechanism of actively managed equity products on the BSE. Compared with existing two-year periodic open-ended funds, the three-month model strikes a balance between liquidity and stability. The shorter minimum holding period helps mitigate the impact of frequent short-term subscriptions and redemptions on small-cap stocks while significantly reducing investors' time costs.

Product Matrix Expansion

At the 2025 Financial Street Forum Annual Meeting, Lu Songbin, Chairman of the BSE, stated that efforts would continue to advance the BSE index system and accelerate the launch of BSE 50 ETFs.

According to Zhu Haibin, once BSE 50 ETFs are introduced, the BSE will form a complete product hierarchy:

• Off-exchange index funds
• Index-enhanced funds
• Three-month holding period active funds
• Two-year periodic open-ended active funds
• On-exchange ETFs

This structure is designed to cater to investors with different liquidity needs, investment strategies, and risk preferences. Continued expansion on the product supply side is expected to broaden channels for capital entry, optimize the investor structure, strengthen value discovery functions, and enhance market stability.

Rising Institutional Interest

Several BSE 50 Index-related funds have recently relaxed their purchase restrictions:

• Huaan Fund announced on September 3 that the cumulative daily subscription, conversion-in, and systematic investment amount per fund account for each class of shares of the Huaan BSE 50 Component Index Fund shall not exceed RMB 2 million. Previously, the limit was RMB 200,000.

• GF BSE 50 Component Index Fund has lifted its purchase restrictions entirely. Starting August 24, the fund removed the previous daily subscription limit and resumed normal large-amount subscription services.

Fund Participation Trends

According to estimates by Huayuan Securities, as of the end of June 2026:

• The number of funds participating in BSE investments reached 656, an increase of approximately 54% from 426 at the end of 2025.
• However, holdings market value declined slightly to RMB 7.03 billion from RMB 7.3 billion at the end of 2025.

This indicates that allocations to the BSE by non-themed funds exhibit characteristics of "expanding breadth while stabilizing total volume." Overall, the attractiveness of the BSE to actively managed equity funds remains at historically high levels.

Outlook from Fund Managers

E Fund Management believes that as a key segment for innovative development in the capital markets, the BSE aggregates numerous specialized, refined, distinctive, and innovative SMEs. These companies focus on high-quality sectors such as:

• High-end equipment
• Information technology
• Chemical new materials
• Consumer services
• Pharmaceuticals and biotechnology

These companies possess long-term investment value characterized by high growth potential and serve as an important arena for capturing the growth dividends of small and medium-sized tech-oriented enterprises.

Guolian Fund stated that as more leading companies in hard technology, high-growth industries, and niche segments are listed—along with continued improvements in market-making mechanisms and index fund products, and gradual increases in participation by long-term capital sources such as insurance funds and pension wealth management products—the BSE market is expected to further improve liquidity, optimize the investor structure, and enhance pricing efficiency for core assets.