Retail investors are confused! Major players are making large adjustments to their positions, broad-based ETF sales exceed 70 billion yuan, but these themes continue to be increased.

This week, stock indices strengthened collectively, with a total net outflow of 78.9 billion yuan from stock ETFs and cross-border ETFs in the Shanghai and Shenzhen markets.

In terms of industry themes, ETFs related to securities, satellites, and others were favored by funds, while ETFs related to chips and power grid equipment were sold off.

Over 70 billion yuan of funds exited via ETFs

This week, the combined trading volume of the Shanghai and Shenzhen markets reached 9.42 trillion yuan, including 4.16 trillion yuan in Shanghai and 5.26 trillion yuan in Shenzhen. As of the latest close, the Shanghai Composite Index closed at 4179.95 points, up 1.65% for the week, while the Shenzhen Component Index closed at 15563.8 points, up 3.02% for the week.

Data shows that this week, the combined net outflow from stock ETFs and cross-border ETFs in the Shanghai and Shenzhen markets was 78.9 billion yuan, including 73.8 billion yuan in net outflow from broad-based index ETFs and 5.492 billion yuan in net outflow from industry theme ETFs.

Looking at the details, based on overall fund subscription and redemption statistics for major broad-based indices, this week the CSI 300 had a net outflow of 32 billion yuan and the CSI 500 had a net outflow of 14.1 billion yuan.

For specific ETFs, the 10 largest broad-based index ETFs by size together recorded a net outflow of 62.903 billion yuan this week. Among them, the CSI 500 ETF Southern and the CSI 300 ETF Huatai Bairui both saw net outflows of over 12 billion yuan.

Performance of major index-related ETFs this week

Some brokerages said that after the US-Iran conflict eased in phases, market sensitivity to geopolitical risk clearly declined, and technology and growth areas became the main drivers of the market. They expect it is more likely that the Shanghai Composite Index will keep moving in an upward range, and advise close attention to macroeconomic data, overseas liquidity changes, and policy developments.

Securities- and satellite-related ETFs saw fund buying

Regarding industry theme ETFs, there were 43 funds with net inflows exceeding 100 million yuan this week. Among them, the securities ETF Guotai, the satellite ETF Yongying, and the non-ferrous metals ETF Southern increased their share holdings by 1.204 billion, 516 million, and 314 million respectively. Their net inflow funds were 1.311 billion, 1 billion, and 692 million yuan, respectively.

On the outflow side, this week 51 industry theme ETFs recorded net outflows exceeding 100 million yuan. Specifically, the chip ETF Huaxia, the power grid equipment ETF Huaxia, and the semiconductor equipment ETF Guotai saw their share holdings decrease by 813 million, 775 million, and 1.122 billion shares respectively, resulting in net outflow funds of 1.805 billion, 1.581 billion, and 1.162 billion yuan, respectively.

This week, funds surged into the satellite sector, and related ETF share holdings hit new highs again.

Satellite ETF Yongying (159206) fund share changes

Some brokerages said that during the “15th Five-Year Plan” period, commercial space will become an important engine for promoting new quality productivity and high-quality technological development in China. To capture valuable orbit and spectrum resources, the number of China’s constellation satellite launches in 2026 is expected to further increase. Private commercial rocket companies are expected to participate more deeply and become an effective supplement to the state-led team, jointly supporting high-frequency launch demand. They are optimistic about investment opportunities in China’s satellite internet industry chain in 2026.

Meanwhile, the recently hot chip sector was sold off by funds, and related ETF share holdings hit a nearly one-year low.

Chip ETF Huaxia (159995) fund share changes

In the view of brokerages, by 2026 the storage industry is unlikely to form large-scale, effective supply. This trend is expected to keep transmitting to upstream semiconductor equipment and packaging/testing segments. Domestic storage chip design, storage module manufacturers, semiconductor equipment, and packaging/testing companies are all expected to benefit.

13 ETFs with weekly trading volume exceeding 100 billion yuan

This week, with only three trading days, there were 13 ETFs with weekly trading volume exceeding 100 billion yuan, including stock ETFs and cross-border ETFs. Among them, the CSI 500 ETF Southern, the China-Korea Semiconductor ETF Huatai Bairui, and the CSI 300 ETF Huatai Bairui each had weekly trading volume exceeding 200 billion yuan.

It is worth noting that several broad-based ETFs reached new highs in their secondary-market prices this Tuesday.

Some brokerages said that in May, it is recommended to adopt a strategy of “balanced allocation + focusing on performance.” Technology, AI, and optical communications are currently in a state of “high prosperity, high valuation, and high crowding,” meaning requirements for trading ability are getting higher. In May, attention should be paid to sub-sectors with performance that keeps exceeding expectations, rather than simply following a broad market rally.

7 ETFs to be listed next week

Fund holdings are always a hotspot for investors, but the top holdings of actively managed funds tend to be revealed with a certain lag. In contrast, the underlying assets tracked by ETFs are very clear. By tracking newly listed ETFs, investors can often find recent hot stocks, and the incremental capital brought by newly listed ETFs is also worth paying attention to.

Currently, 7 ETFs have disclosed that they will be listed next week, and their tracked underlying assets include electricity, artificial intelligence, grains, automobiles, non-ferrous metals, and Hong Kong stock connectivity technology, among others.

Currently, 8 ETFs have disclosed their issuance for next week, and they track underlying assets such as STAR Market 200, food, agriculture, medical devices, and non-ferrous metals, among others.

(Source: Daily Economic News)