Daisy Li, fund manager at EFG Asset Management, said "the whole world has shifted to security-centric from cost-centric," adding the United States is aiming to revive its manufacturing industry. They predicted more Sino-U.S. tensions going forward. Shanghai's tech-focused STAR Market - which Beijing hopes will fund China's tech self-sufficiency - has tumbled roughly 30% this year. The lightening approval of the ETFs also comes as securities regulators have vowed to maintain market stability ahead of the 20th Party Congress, to be held from Oct. 16.

(Reporting by Samuel Shen, Jason Xue and Brenda Goh; Editing by Ana Nicolaci da Costa)