Retail investors are confused! Ahead of the holiday, the big players offloaded a staggering 24.4 billion yuan via ETFs in a frenzy, and even the strong telecommunications sector got sold off hard.

Stock indexes collectively corrected this week, with equity ETFs and cross-border ETFs listed on both the Shanghai and Shenzhen markets recording a total net outflow of CNY 24.43B.

From an industry-theme perspective, ETFs such as gold and battery are favored by funds, while ETFs related to communication and coal are being sold off.

In the week before the holiday, over CNY 24 billion in funds exited via ETFs

In the week before the small holiday, trading in the Shanghai and Shenzhen markets totaled CNY 9.41 trillion, including CNY 4.15 trillion in Shanghai and CNY 5.26 trillion in Shenzhen. As of the latest close, the Shanghai Composite Index closed at 3,880.1 points, down 0.86% for the week; the Shenzhen Component Index closed at 13,352.9 points, down 2.96% for the week.

Wind data shows that this week, equity ETFs and cross-border ETFs in the Shanghai and Shenzhen markets recorded a combined net outflow of CNY 94.1k; broad-market index ETFs recorded a net outflow of CNY 17.5 billion; and industry-theme ETFs recorded a net outflow of CNY 41.5k.

Looking at details, based on overall subscription/redemption statistics for major broad-market index products, this week the STAR Market 50 and the ChiNext Index achieved net inflows, while the CSI A500 recorded a net outflow of CNY 52.6k.

For specific ETFs, among the 10 largest broad-market index ETFs by size, the combined net outflow this week totaled CNY 24.43B. Specifically, the Huatai-PineBridge CSI 300 ETF, the Southern CSI 500 ETF, the Huaxia SSE 50 (510050) ETF, and the Huatai-PineBridge CSI A500 ETF all recorded net outflows exceeding CNY 1 billion.

Performance of major index-related ETFs this week

A broker said that in the short term, market trading activity may be somewhat sluggish, and at the index level it may continue to trade sideways. Over the medium term, the market will most likely be dominated by broad sideways movement, with the magnitude of volatility possibly increasing. Investors are advised to manage position sizes reasonably and wait for the appearance of market-driven turning-point signals.

Gold-stock-related ETFs are being chased by funds, while the hot communication-related ETFs are being sold

In terms of industry-theme ETFs, there are 23 funds with net inflows exceeding CNY 100 million this week. Among them, the Yongying Gold Stock ETF and 广发 Battery ETF and the Tianhong Nonferrous Metals ETF saw their share counts increase by 406 million, 400 million, and 431 million units, respectively, with net inflow funds of CNY 919 million, CNY 442 million, and CNY 366 million.

On the side of fund outflows, 44 industry-theme ETFs recorded net outflows exceeding CNY 100 million this week. Among them, the communication ETF (Guotai) reduced its shares by 9.68B units, the coal ETF (Guotai) reduced by 0.733 billion units, and the real-estate ETF (Southern) reduced by 8B units. The corresponding net outflow funds were CNY 1.16 billion, CNY 894 million, and CNY 771 million, respectively.

It is worth noting that gold-stock-related ETFs were chased for shares before the holiday, and the related ETF share counts rebounded slightly; meanwhile, communication was met with fund selling.

Yongying Gold Stock ETF (517520) — change in fund shares

A broker said that the medium-term trend of gold prices still depends on U.S. dollar credit and liquidity factors. After this round of Middle East conflict, it is expected that the continuation of two major trends—looser liquidity and weakening U.S. dollar credit—will continue to push up gold prices.

Guotai Communication ETF (515880) — change in fund shares

Some analysts believe that the AI trend is now clear. With domestic and international cloud-service providers increasing capital expenditures at a high rate, the communications sector—an “shovel-selling” compute-power industry—is expected to continue growing in market size.

19 ETFs had weekly trading values exceeding CNY 10 billion

This week, there were 19 ETFs with weekly trading values exceeding CNY 10 billion among equity ETFs and cross-border ETFs. Among them, the 广发 Hong Kong-listed Innovative Drugs ETF, the Huatai-PineBridge A500 ETF, the Southern A500 ETF, and the Guotai CSI A500 ETF all recorded weekly trading values exceeding CNY 30 billion.

It is worth noting that several ETFs related to Hong Kong stocks hit new 60-day lows in price this week.

A broker said that the current irrational adjustment of the Hang Seng Tech Index has already sufficiently released near-term sentiment and risk. At present, it shows four bottoming characteristics: oversold conditions and valuation troughs, funds accumulating against the trend, the fundamentals of the AI sector looking favorable, and corporate share buybacks likely to be stepped up soon. With clear sector support and a significantly improved risk-reward for allocation, the configuration value is notably higher.

9 ETFs to be issued next week

Investors have long been focused on the top holdings of funds, but in actively managed funds, their top holdings often surface with a certain lag. By contrast, the underlying assets that ETFs track are very clear—by tracking newly listed ETFs, investors can often identify recently hot individual stocks, and the incremental capital brought by newly listed ETFs is also worth paying attention to.

Currently, 1 ETF has disclosed that it will be listed next week, tracking the underlying asset of oil and natural gas.

Currently, 9 ETFs have disclosed plans to issue next week, tracking underlying assets such as nonferrous metals, Hong Kong-listed stock connect information technology, home appliances, automobiles, oil and natural gas, and so on.

(Editor: Li Yue)

     【Disclaimer】This article only represents the author’s personal views and is not related to Hexun. Hexun is neutral regarding the statements and judgments made in the article and does not provide any express or implied guarantees regarding the accuracy, reliability, or completeness of the contents. Readers should use this information for reference only and bear full responsibility themselves. Email: news_center@staff.hexun.com

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