Investors divided over plans to raise $47 bn fund for tech IPOs in China

The launch of the six mutual funds could sap market liquidity in the short term and lead to more volatility

Asset managers began fundraising for six Chinese "unicorn" funds on Monday, offering retail investors a new investment channel but potentially straining tight market liquidity.

The 300 billion yuan ($47 billion) they seek to raise in the coming week stands to top all the equity funds raised in China last year, and the money will be used to fund mainland listings of homegrown tech firms such as smartphone maker Xiaomi and e-commerce giant Alibaba Group Holding.

The launch of the six mutual funds - the biggest such move orchestrated by the Chinese government since rescue funds were set up during the