Last week, over 10 billion in funds flowed back into stock ETFs, with the hard-tech sector maintaining high interest.

In the recent volatile adjustment of A-shares, funds have been deploying against the trend through ETFs. Last week, stock ETFs saw net inflows of over 11 billion yuan. In terms of fund flows, significant capital was poured into hard-tech sectors represented by semiconductors, while some funds withdrew from tracks such as consumer electronics. According to industry insiders, the trading activity in the tech sector has continued to heat up recently, with high congestion levels, and funds are shifting from "general tech" to "AI performance delivery."

Semiconductors remain the main "capital magnet."

According to Wind data, in the week from June 29 to July 3, stock ETFs recorded net inflows of 11.03B yuan, compared to net outflows of 67.32B yuan in the previous week (June 22 to June 26). The top three sectors by net inflows last week were semiconductor chips, telecommunications, and securities.

Specifically, the Guotai Semiconductor Equipment ETF saw net inflows of 7.12B yuan, the E Fund Semiconductor Equipment ETF saw net inflows of 4.94B yuan, the GF Semiconductor Equipment Theme ETF saw net inflows of 3.62B yuan, and the Guotai Communication Equipment ETF saw net inflows of 3.44B yuan. Additionally, the Guotai Securities Company ETF, the China Universal Semiconductor Chip ETF, and the Hua Bao Securities Company ETF each recorded net inflows of over 1.5 billion yuan.

ETFs with higher net outflows last week were mainly affected by short-term market fluctuations, accelerated sector rotation, and profit-taking in sectors that had previously risen significantly. Among specific ETF products, the China Universal Power Grid Equipment Theme ETF saw net outflows of 696 million yuan, and the China Universal Consumer Electronics Theme ETF saw net outflows of 506 million yuan. In addition, the Harvest Rare Metals Theme ETF and the Lions Semiconductor ETF also recorded relatively large net outflows.

Trading congestion raises concerns.

Last week, tech-related sectors experienced volatile and divergent movements. According to industry insiders, the sector's industrial prosperity has not cooled down, and the long-term demand logic for computing power continues to be confirmed by the industry. However, the tech sector's trading congestion is at historical highs, coupled with increased overseas macro uncertainties and a decline in market risk appetite, leading to heightened volatility in tech-related sectors.

Deng Yue, Director of the Index and Quantitative Investment Department at Xinhua Fund, told Shanghai Securities News that from the perspective of industry development logic, the expansion of the entire AI industry chain relies on underlying computing power support, and the overall development of the industry will drive an exponential growth in computing power demand.

From a medium-to-long-term industry cycle perspective, Deng Yue believes that the phased supply-demand gap in the computing power market will gradually be repaired and bridged. Once the supply of computing power hardware reaches a dynamic balance with market demand, the excess profits previously enjoyed by the industry may gradually decline. Meanwhile, cloud service providers, having largely completed large-scale hardware procurement, will see reduced expenditures and lower costs, significantly boosting their profit margins.

In the short term, the high trading congestion in the tech sector, especially among certain individual stocks, has triggered concerns among institutions to some extent. "Funds are highly concentrated in a few leading stocks, making the market microstructure fragile. The sharp rise in tech stocks has created a clear 'sucking' effect on stable assets such as dividend stocks. At the same time, overseas macro uncertainties persist, global risk aversion is rising, and the market's tolerance for high-volatility assets is declining, with overall risk appetite being significantly suppressed," said Hua An Fund.

Yang Gang, Chief Economist at Golden Eagle Fund, believes that within the tech main line, the trend will shift from thematic diffusion to performance screening. High-prosperity directions with the ability to deliver real orders, revenue recognition, and profit realization are still expected to maintain relative strength. "The AI industry trend has not been falsified yet, and the tech main line still has order clues and prosperity expectations supporting it. The current adjustments are more due to trading congestion, valuation increases, and profit distribution disputes in the industry chain, rather than a systemic collapse in demand logic. Therefore, the market is likely to maintain high-level fluctuations," Yang Gang said.

(Author: Chen Yingqing, Hu Yao) (Editor: Wen Jing)

Keywords: Stock ETFs