Retail investors are confused! Before the holiday, major players dumped 24.4 billion yuan through ETFs, and the strong communication sector was also sold off.

Financial Daily Reporter | Ye Feng Financial Daily Editor | Xiao Ruidong

This week, stock indices collectively declined, with a total net outflow of 24.43B yuan from stock ETFs and cross-border ETFs in the Shanghai and Shenzhen markets.

In terms of industry themes, ETFs related to gold, batteries, and other sectors were favored by funds, while communication and coal-related ETFs were sold off.

Over 24 billion yuan of funds exited via ETFs in the week before the holiday

In the week before the short holiday, the combined trading volume of the Shanghai and Shenzhen markets reached 9.41 trillion yuan, with 4.15 trillion yuan in Shanghai and 5.26 trillion yuan in Shenzhen. As of the latest close, the Shanghai Composite Index closed at 3,880.1 points, down 0.86% for the week, and the Shenzhen Component Index closed at 13,352.9 points, down 2.96% for the week.

Wind data shows that this week, the total net outflow from stock ETFs and cross-border ETFs in the Shanghai and Shenzhen markets was 94.1k yuan, with broad-based index ETFs net outflows of 17.5 billion yuan, and industry theme ETFs net outflows of 41.5k yuan.

Breaking down further, the overall fund subscription and redemption statistics for major broad-based indices show that this week, the Sci-Tech Innovation 50 and ChiNext Index experienced net inflows, while the CSI A500 saw a net outflow of 52.6k yuan.

Regarding specific ETFs, the top 10 broad-based index ETFs by size collectively had a net outflow of 24.43B yuan this week, including Huatai-PineBridge CSI 300 ETF, Southern CSI 500 ETF, Huaxia SSE 50 ETF, and Huatai-PineBridge CSI A500 ETF, each with outflows exceeding 1 billion yuan.

Performance of major index-related ETFs this week

Some brokerages suggest that short-term market activity may remain subdued, with indices likely to stay volatile. In the medium term, the market is expected to fluctuate within a wide range, with increased volatility. It is recommended to reasonably control positions and wait for spontaneous market turning points.

ETFs related to gold stocks attracted funds, while highly active communication-related ETFs were sold off

In terms of industry theme ETFs, 23 funds saw net inflows of over 100 million yuan this week. Among them, gold stock ETFs (Yongying), battery ETFs (GF), and non-ferrous metals ETFs (Tianhong) increased their shares by 4.06 billion, 4 billion, and 4.31 billion units respectively, with net inflows of 919 million yuan, 442 million yuan, and 366 million yuan.

On the outflow side, 44 industry theme ETFs experienced net outflows exceeding 1 billion yuan this week. Notably, communication ETFs (Guotai), coal ETFs (Guotai), and real estate ETFs (Southern) saw reductions of 406M, 733 million, and 573 million units, with net outflows of 1.16 billion yuan, 894 million yuan, and 771 million yuan respectively.

It is worth noting that, prior to the holiday, gold stocks were popular among funds, leading to a slight increase in related ETF shares; meanwhile, communication ETFs faced selling pressure.

Gold stock ETF Yongying (517520) fund share changes

Some brokerages indicate that the medium-term trend of gold prices still depends on dollar credit and liquidity factors. After the recent Middle East conflict, the continuation of loose liquidity and weakening dollar credit are expected to further push up gold prices.

Communication ETF Guotai (515880) fund share changes

Analysts believe that the current AI trend is clear, with domestic and international cloud service providers increasing capital expenditure significantly. As the “selling shovels” industry of computing power, the market size of the communication sector is expected to continue growing.

19 ETFs had weekly trading volumes exceeding 10 billion yuan

This week, 19 ETFs with weekly trading volumes over 10 billion yuan included Hong Kong stock innovation drug ETF (GF), Huatai-PineBridge A500 ETF, Southern A500 ETF, and CSI A500 ETF (Guotai), each exceeding 30 billion yuan in weekly turnover.

It is noteworthy that several Hong Kong stock-related ETFs hit 60-day lows this week.

Some brokerages suggest that the irrational correction of the Hang Seng Tech Index has sufficiently released short-term emotional risks. Currently, the sector exhibits four bottom characteristics: oversold and undervalued, contrarian fund accumulation, improving fundamentals of AI industry, and imminent corporate buybacks. Sector support is clear, and allocation value has significantly increased.

9 ETFs to be launched next week

While the holdings of funds are always a hot topic for investors, the holdings of actively managed funds tend to lag behind. In contrast, ETF targets are very clear, and tracking newly listed ETFs can often reveal recent hot stocks. The influx of funds brought by new ETFs is also worth noting.

Currently, one ETF has disclosed plans to list next week, tracking the oil and natural gas sector.

Nine ETFs have announced next week’s issuance, tracking sectors such as non-ferrous metals, Hong Kong Stock Connect information technology, home appliances, automobiles, and oil and natural gas.

Cover image source: Financial Daily Media Library