I. Market Overview

A-shares fluctuated and declined last week (October 16 to October 20). All important indices fell by more than 3%, and the Shanghai index fell below the 3,000 point mark. The Shanghai Index fell 3.40% in a week, the Shenzhen Index fell 4.95%, and the GEM index fell 4.99%. The average daily turnover of the two markets was 771,871 billion yuan, a decrease of 32.755 billion yuan from last week. The net outflow of capital to the North was 24.044 billion yuan last week.

Global stock markets did not perform well. In terms of Hong Kong stocks, the Hang Seng Index fell 3.60% in a week, and the Hang Seng Technology Index fell 5.61%; US stocks also couldn't hide their decline. The S&P 500 index fell 2.39% in a week, and the NASDAQ fell 3.16%.

In terms of industry performance,None of the 30 CITIC Tier 1 industries rose last week; industries with minor declines: coal, non-bank finance, and general finance; industries with large declines: communications, pharmaceuticals, and computers.

In terms of the conceptual sector,Concepts such as Huakun Zhenyu, stock trading software, brokerage, natural gas, and oil and gas extraction performed relatively well, while Wande CPO, consumer electronics foundry, and diet medicine performed poorly.

Judging from the fund's performance,Funds that are heavily invested in sectors such as gold and brokerage firms performed relatively well, while themed funds represented by cloud computing, traditional Chinese medicine, communications, and big data did not perform well.

II. Capital flow

The net outflow of equity ETFs was 1,645 billion yuan, and the net inflow of capital from currency ETFs was 10.153 billion yuan.

Judging from the direction of capital outflows, broad-based index ETFs are the main “losing blood” position. The Shanghai and Shenzhen 300 ETF had a net outflow of over 3 billion yuan per week, ranking first among stock ETFs; the SSE 50 ETF ranked second with a net redemption capital of 1,619 billion yuan; and the five broad-based ETFs tracking the China Securities 1000 Index had a total net outflow of 4.53 billion yuan.

Funding chose to tap into theme sectors with more growth attributes, such as GEM and Science and Technology Network stocks. The GEM ETF fell nearly 6% last week, bucking the trend and attracting 1,332 billion yuan. Broad-based index ETFs such as the Hang Seng Internet ETF, the Hang Seng Technology Index ETF, and the China Securities Internet ETF had the highest net flow of capital last week.

III. The rise and fall rate of ETFs

The A-share market index fell sharply last week. The average net value of equity ETFs fell 4.33%; the average net value of cross-border ETFs fell 3.80%;The average net value of commodity ETFs rose 3.76%; the average net value of bond ETFs fell 0.37%; the average net value of currency ETFs rose 0.03%;

Specifically, Jianxin Gold's ETFAU performed the best, rising 4.7% in a week. The securities sector followed. Huafu Fund Securities ETF Pioneer had a cumulative increase of 1.3% last week, and the Huaxia Fund Soybean Meal ETF rose 1.17%.

In terms of decline, the Yunjiu computing sector had the worst performance last week, with the Xinhua Fund Cloud 50 ETF falling 8.85% over the week. The Chinese medicine sector also underperformed, with Huitianfu's Chinese medicine ETF falling 8.73% last week. The performance of the big data sector was weak, and Penghua Fund's big data ETF fell 8.44% weekly.

IV. Changes in fund shares

Last week, capital positions in the Shanghai and Shenzhen 300 ETF and the Shanghai Stock Exchange 50 ETF were promptly stopped. Last week, capital was promptly stopped. They chose to invest in ETFs with themes such as Hang Seng Internet, Healthcare, and GEM. Among them, the shares of Huaxia Fund Hang Seng Internet ETF and Huaxia Fund Hang Seng Technology Index ETF increased by 2.84 billion shares and 1,918 billion shares respectively last week. Under drastic adjustments in the diet medicine sector, funding was re-selected to invest in pharmaceutical-themed ETFs. The shares of Huabao Fund's medical ETF and Yefangdaji Pharmaceutical ETF increased by 2,215 million and 1,177 billion shares respectively last week.

GEM indicates that last week, when it reached a record low, capital bucked the trend. The shares of the Huaan Fund GEM 50 ETF and the E-Fangdaji GEM ETF increased by 867 million shares and 782 million shares, respectively, last week.

In terms of share decline, capital braked sharply. ETFs in broad-based indices such as the Shanghai and Shenzhen 300, China Securities 1000, and Shanghai Securities 50 were all sold off last week. Among them, the share of Huatai Berry Fund's Shanghai and Shenzhen 300 ETF decreased by 834 million shares last week, and Huaxia Fund's share of the Shanghai and Shenzhen Stock Exchange 50 ETF fell by 644 million shares last week. The total shares of Huaxia Fund's China Securities 1000 ETF, Yifangda Fund's China Securities 1000 ETF Index ETF, Guangfa Fund's China Securities 1000 ETF Index, and China Southern Fund's China Securities 1000 ETF declined by 1,985 billion shares last week. It has been two weeks in a row that capital has been sold off.

What is relatively rare is that the share of the Guangzhou Development Fund's NASDAQ ETF also fell by 519 million shares last week.

5. Hot news

CICC Report: The scale of public funds allocated by financial management institutions rose to more than 1 trillion yuan in the second quarter

According to the “2Q23 Tracking of Financial Management Public Fund Allocation” report recently released by CICC, judging from the recently disclosed asset data of financial institutions, the scale and proportion of public funds allocated by financial management institutions both rebounded in the second quarter of this year, and the actual allocation scale reached about 1 trillion yuan. Most of the funds allocated to financial management were bond funds. Among them, short-term debt funds increased by 10 percentage points compared to the first quarter.

Western Profit Fund: It may already be dark before dawn, we need firm confidence

Looking ahead to the future market, Western Profit Fund believes that judging from the economic data for the third quarter, with the exception of real estate, all showed signs of improvement. The market slump was mainly limited by liquidity, and the continued outflow of capital to the north had a certain impact on market sentiment. Considering that the current market has fallen below the low point in October last year, valuations are cost-effective, and it is not appropriate to be overly pessimistic about the future market, “it may already be dark before dawn, so we need firm confidence.”

The list of personal pension agency agencies for the third quarter was released, and the three brokerage firms in western China, Zhongtai, and Shenwan Hongyuan were recently shortlisted

The China Foundation Association announced the list of personal pension distribution agencies as of September 28, 2023. A total of 48 institutions were shortlisted, adding 3 new companies from the end of June in the second quarter. They are all brokerage firms, namely Bank of China Securities, Zhongtai Securities, and Shenwan Hongyuan Western Securities. Specifically, in the current personal pension distribution list, there are 22 brokerage firms, 19 banks, and 7 independent fund sales agencies