Funds flow into the market via stock ETFs, with broad-based products heavily increasing their holdings

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It is worth noting that during the sharp pullback in the A-share market on July 13, nearly 60 billion yuan in bottom-fishing funds entered the market via stock-based ETFs. The amount of capital reached a new single-day high since April 8, 2025, with broad-based ETFs such as the CSI 1000, CSI 300, and CSI 500 seeing large-scale increases in holdings. Recently, volatility in A-share technology sectors has intensified. Industry institutions note that the earlier technology growth track continued to strengthen, accumulating a sizable amount of margin financing; as market fluctuations have increased, some leveraged funds have begun to withdraw, either voluntarily or involuntarily. From a mid-term perspective, the core logic supporting the upward direction of the A-share market has not changed due to this round of deleveraging. The current pullback is more of a correction to trading structure, as the market is in a phase of transition from extreme structural performance to style rebalancing. The AI industry trend has not been falsified, and in the third quarter it may shift to a stage of “picking specific sub-sectors and validating performance.” (The Securities Journal)
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