China approved 18 actively managed exchange-traded funds on Monday, clearing domestic fund managers to channel tens of billions of yuan into mainland equities.

Each fund could raise around 2 billion yuan, or roughly US$300 million, during subscription drives starting as early as Friday. The China Securities Regulatory Commission cleared the batch from domestic public fund houses after a three-month review. Fund managers may issue initial offer details as early as Tuesday, opening a direct pipeline of institutional cash for Shanghai and Shenzhen listings.

Speaking at the Financial Street Forum in Beijing, CSRC chairman Wu Qing confirmed the approvals while outlining measures to stabilize equity prices. The new batch represents a shift toward active management within the exchange-traded market, giving portfolio managers leeway to select individual stocks rather than mechanically tracking broad equity indexes.

Unlike passive benchmark trackers that buy across an entire gauge, actively managed funds allow stock pickers to concentrate capital in undervalued names or specific sectors. For domestic institutional investors, this structure offers a mechanism to deploy liquidity quickly without absorbing the broader market drag from troubled legacy sectors.

The push follows sharp declines across mainland bourses. The benchmark CSI 300 Index fell 3.4 percent over the five trading sessions through Friday, capping an unprecedented 10-week losing run. Although the index bounced 0.3 percent on Monday following third-quarter growth data, it sits roughly 17 percent below its June peak, flirting with technical bear-market territory.

State-backed institutional buyers, collectively known as the National Team, have already stepped up purchases.

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