htmlOn July 11, the first batch of 8 government bond ETFs in the industry were officially approved. Specifically, GF Fund , Boshi Fund , Fuguo Fund , China Merchants Fund, China Construction Bank Fund, Huaan Fund , Ping An Fund, and Guotai Fund government bond ETFs all received approval documents.Reporter Du Meng

The so-called government bond is issued by the three major policy banks , the National Development Bank of China , the Agricultural Development Bank of China , and the Export-Import Bank of China . It is guaranteed by the central government and is called "quasi-treasury bond". For investors, policy-based financial bond has a high credit rating, large scale and good liquidity, and is a relatively stable investment target.
The 8 index ETFs approved this time cover different time dimensions of maturity index varieties, which can meet investors' diversified allocation needs.
"From April 22-29, more than 10 fund companies reported all-cash redemption securities bond ETFs, but not each of them was approved. Today, only 8 were approved as the first batch of securities bond ETFs." A person from the issuance department of a leading fund company revealed.
Interface News reporter learned that compared with the existing securities bond index fund , the government bond ETF approved this time has many advantages.
For example, investors of ordinary government bond index funds can subscribe and redeem over the market in cash, and redemption generally takes T+3 or more. Cash redemption government bond ETFs can be subscribed and redeemed in cash, and can be listed and traded. The funds can be available as soon as possible on the day of sale, making investors more flexible and convenient to invest.
In addition, this product can also enjoy tax policy benefits, exempt from interest income tax on government bond holding period interest rate, exempt from treasury bonds, government bonds and other capital gains income tax and value-added tax, reducing costs for investors to invest.
Industry insiders said that the approved government bond ETFs are cross-market bond ETFs, which will help promote the interconnection between banks and exchange markets, increase the overall scale of my country's bond ETFs, and enhance the influence of Shanghai and Shenzhen Stock Exchange bond ETFs; in addition, government bond ETFs will further improve the risk gradient of on-site instrument products to meet investors' diversified investment needs.
"I received the approval document this afternoon and it is expected that the issuance will be launched as soon as next week." The above-mentioned public funder said.