On October 31, Guotai Fund issued an announcement stating that its Guotai Xinhui Balanced Income Actively Managed Exchange-Traded Equity Securities Investment Fund (exchange abbreviation: Xinhui Balanced Active ETF Guotai, code: 158907) decided to move its subscription deadline forward from the originally planned November 5 to October 30, because total valid subscription applications exceeded the 2 billion unit fundraising cap, and would stop accepting subscription applications from October 31.
This means that this active ETF, which only began issuance on October 23, completed its 2 billion yuan fundraising target in just eight calendar days and will activate a "last-day pro-rata confirmation" mechanism.
According to the announcement arrangement, the fund manager will partially confirm valid subscription applications for online cash and offline cash on October 30 using the "last-day pro-rata confirmation" principle, and subscription funds for the unconfirmed portion will be returned to investors.
Guotai Fund noted in the announcement that due to factors such as the precision of processing each subscription detail, the final confirmed cumulative valid subscription units may slightly exceed 2 billion units. The confirmed units for last-day subscription applications are not subject to the minimum subscription limit, and the final result shall be based on calculation and confirmation by the registration institution.
The early closing of Guotai Xinhui Balanced Active ETF was not an isolated event. On the same day, an active ETF under ICBC Credit Suisse also announced an early end to fundraising and adopted pro-rata allocation.
According to reports, the number of products among the first batch of active ETFs that have completed their issuance targets has increased to 15, raising about 34.5 billion yuan in total, of which 7 products have been formally established, with a combined establishment scale of 14 billion yuan, and established products have already begun building positions.
As one of the first batch of 18 approved active ETFs, the issuance window for Guotai Xinhui Balanced Active ETF coincided with the low-level area after the A-share market experienced a phased correction. Liang Xing, chief quantitative officer and director of the quantitative investment department at Guotai Fund, said in an earlier interview that current A-share valuation risks have been fully released to a considerable extent, and issuing an active ETF at a low level at this time means both a more relaxed cost basis for position building and reflects institutions' confidence in the capital market. She estimated that with a fundraising cap of 2 billion yuan for each of the first batch of 18 products, they could collectively bring nearly 36 billion yuan of incremental funds to A-shares. MACD golden cross signals have formed, and these stocks are rising well!
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