Funds Inflow to Stock ETFs Halts; Market Sees Structural Divergence

After several days of heavy buying, the net inflow of funds into stock ETFs suddenly "ran out of steam" yesterday!

On October 10th, the market experienced significant fluctuations, with the three major indices closing with mixed results. The Shanghai Composite Index rose and then fell back, while the ChiNext Index continued to adjust. By the close, the Shanghai Composite Index was up by 1.31%, the Shenzhen Component Index was down by 0.82%, the ChiNext Index was down by 2.95%, and the STAR 50 Index fell by more than 4%.

Amid market divergence between bulls and bears, stock ETFs saw a net outflow of funds of 0.03 billion yuan yesterday, ending the momentum of substantial net purchases that had been ongoing for several days. However, ETFs tracking the STAR 50 and the CSI 300 indices still showed net inflows, with both types of ETFs attracting over 4 billion yuan in a single day; ETFs tracking the ChiNext Index and the CSI 1000 Index "bled" significantly, with net outflows leading the pack.

Industry insiders have stated that after the widespread stock market rally comes to a pause, capital will subsequently seek structural investment opportunities, and the stock ETF market will also exhibit a structural divergence in capital flows.

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ETFs tracking the STAR 50 Index and the CSI 300 Index lead in net inflows

Wind data shows that as of October 10th, the total scale of 933 stock ETFs (including cross-border ETFs) in the entire market reached 3.32 trillion yuan. During yesterday's massive stock market fluctuations, the total shares of stock ETFs decreased by 2.574 billion, and according to the average transaction price in the interval, the net outflow of funds for the day was approximately 0.03 billion yuan.

In terms of specific categories, broad-based ETFs still led in net inflows of funds, reaching 3.96 billion yuan, and industry ETFs also recorded a net inflow of 1.528 billion yuan. Yesterday, Hong Kong stock ETFs and cross-border ETFs led in net outflows, with 2.834 billion yuan and 1.562 billion yuan, respectively.

Specifically, in terms of index dimensions, on the broad-based side, ETFs tracking the STAR 50 Index and the CSI 300 Index led in net inflows on October 10th, both exceeding 4 billion yuan.

Among them, the Huaxia Fund's STAR 50 ETF saw net purchases exceeding 3.5 billion yuan, with the latest scale surpassing 110 billion yuan; the Huatai-PineBridge CSI 300 ETF recorded net inflows exceeding 1.5 billion yuan, with the latest scale reaching 408.4 billion yuan.

A stock ETF fund manager stated that as the stock market concludes the stage of widespread gains, the phenomenon of a large amount of capital "running into the market" and "following the car" of the broad market through stock ETFs has also come to an end. In the medium to short term, with the continuous recovery of the economy and the catalysis of a series of policies aimed at invigorating the capital market, the pattern of an active and fluctuating upward stock market has not changed, and the broad-based market represented by the CSI 300 Index is still expected to gradually rise amidst fluctuations.Bosera Fund also stated that although the A-share market has shown strength recently, the rapid rise in the short term has accumulated a significant amount of profit-taking positions, and the market has a certain demand for adjustment. As a result, the market has experienced violent fluctuations in recent days. The institution advises investors to remain calm, control their positions when encountering short-term sharp rises and falls in A-shares, manage returns and risks, and not to panic excessively due to short-term market fluctuations, while paying attention to subsequent policy trends.

In terms of broad-based index products, the net inflows of funds into the CSI 300 ETFs under E Fund, Harvest Fund, Tianhong Fund, and GF Fund are also among the top. In addition, the ChiNext Board ETF GF and the SSE 50 ETF are also among the top in terms of fund attraction.

Looking at the past 5 days, the funds flowing into the ChiNext Board Index ETF and the CSI 300 Index ETF have exceeded 45 billion yuan and 43 billion yuan, respectively, and the net inflow into the STAR 50 Index ETF has also exceeded 35 billion yuan in the past 5 days.

The STAR Chip ETF has attracted significant funds, and the trading of securities ETFs is active.

In terms of industry-themed ETFs, yesterday, the STAR Chip ETF under Harvest Fund saw a net inflow of over 2.3 billion yuan, ranking first.

The securities sector has benefited from the merger and reorganization of Guotai Junan and Haitong Securities, and the capital market has been active, attracting significant funds in the recent significant fluctuations, with the securities ETF fund, securities ETF, and securities ETF E Fund all attracting more than 300 million yuan in a single day.

In addition, military industry ETFs, chip ETF leaders, and other products also saw net purchases of more than 300 million yuan yesterday, ranking among the top industry ETFs.

In the market fluctuations, the net inflow of some ETFs under leading fund companies continues.

Data shows that on October 10, the large-cap CSI 300 ETF E Fund saw a net inflow of 1.285 billion yuan that day, with the latest scale reaching 264.389 billion yuan; the securities ETF E Fund received a net inflow of 378 million yuan that day. In addition, the securities insurance ETF, semiconductor chip ETF, and STAR entrepreneurship ETF also received net inflows of more than 100 million yuan.

In the Huaxia Fund ETF, on October 10, the STAR 50 ETF received a net inflow of 3.519 billion yuan, with the latest scale reaching 111.537 billion yuan, and the market is paying attention to its investment value.ChiNext ETF and CSI 1000 Index ETF Suffer Significant "Bleeding"

In terms of capital outflows, during yesterday's wide-ranging and massive market fluctuations, ETFs tracking the ChiNext Index and the CSI 1000 Index experienced noticeable net outflows of funds.

Among them, the leading product tracking the ChiNext Index—ChiNext ETF—saw a net outflow of nearly 2.6 billion yuan during yesterday's market turmoil, ranking first in the market. The single-day net outflow of CSI 1000 ETF was also relatively high, reaching 1.479 billion yuan.

Additionally, among broad-based index products, Hang Seng ETF and Shanghai Composite Index ETF both had net outflows exceeding 400 million yuan, ranking at the forefront in the market.

Industry-wise, ETFs tracking the Hang Seng Internet Technology Sector, Animation and Gaming, and the CSI All-Share Semiconductor Index saw substantial net outflows of funds yesterday, amounting to 892 million yuan, 1.114 billion yuan, and 1.313 billion yuan, respectively.

Among the relevant ETFs, Semiconductor ETF experienced a net outflow of over 1.3 billion yuan, Hang Seng Internet ETF saw a net outflow of nearly 1.2 billion yuan, and Gaming ETF had a net outflow of over 600 million yuan.