Financial Services Association, March 19 (Reporter Yan Jun) The Shanghai Stock Exchange released fund and derivatives market data for February 2024, and ETF-related data also surfaced.

Due to the Spring Festival holiday, there were only 15 trading days in February, but the market also experienced a low of 2,635 points in February and began a sharp rebound. The Shanghai Index rose 8.13% throughout February. How is the trading situation in the Shanghai ETF market? What new products have been released? Also, which brokerage firms top the ETF management scale and turnover list?

Compared with January, the Shanghai ETF market was active. The average daily turnover increased by nearly 26% compared to January. New products closely followed market trends, and cross-border ETFs and dividends-themed ETFs were impressive.

In terms of brokerage rankings, due to the use of ETFs by the national team, Shenwan Hongyuan Securities continued to take the lead and maintained its advantage after winning the first place in ETF holdings and ETF transactions in the sales department in January. However, the top two categories of ETF turnover and number of trading accounts are still firmly under Huatai Securities's control.

Compared with 15.68% of the total market share in January 2024, Shenwan Hongyuan Securities increased by another 4.97 percentage points to 20.65%, which is 9.89 percentage points higher than Galaxy Securities, which ranked second. Meanwhile, Galaxy Securities's market share also increased, up to 10.76% from 8.56% in January.

Shenwan Hongyuan Securities continues to lead ETF holdings and sales department ETF transactions

Shen Wan Hongyuan, whose ETF holdings doubled month-on-month in January, continued to lead in February, further expanding its share advantage.

In February of this year, Shenwan Hongyuan Securities's market share of ETF holdings increased from 15.68% in January to 20.65%. Previously, Shenwan Hongyuan Securities had already made a big leap forward in January. It grew by 6.34% at the end of 2023, and defeated “Changsheng General” Galaxy Securities to become number one in Shanghai.

Furthermore, in terms of ETF holdings, Galaxy Securities had a market share of 10.76%, ranking second, with CITIC Securities and China Merchants Securities both accounting for more than 6% of the market.

As in January, Shenwan Hongyuan Securities still took the lead in ETF transactions. Shenwan Hongyuan Securities's Beijing Financial Street Securities sales department had a brokerage ETF market share of 4.68% during the month. Although the share was down from 5.92% in January, it moved away from second place. Huabao Securities Shanghai Dongdaming Road Securities Sales Department ranked second with a ratio of 3.03%. The third place was Hualuo Guotai Junan's headquarters sales department, accounting for 2.92% of the February turnover.

From the perspective of the industry, it is clear that the ETF holding scale is fiercely contested among leading brokerage firms, and under the premise that it is difficult to increase its market share by 1 point, Shenwan Hongyuan Securities was able to complete a continuous jump in the market share ratio of ETF holdings for two consecutive months, and it has a great relationship with the national team to buy ETFs.

Huatai Securities wins both in terms of ETF turnover and number of trading accounts

The top spot in ETF turnover and number of trading accounts in Shanghai is still firmly occupied by Huatai Securities.

In February of this year, Huatai Securities accounted for 12.17% of non-monetary ETF turnover in Shanghai. It is also the only brokerage firm with a double-digit share in the market, far ahead of its peers. Furthermore, the second and third rankings are also very stable. They are still Galaxy Securities and Guotai Junan Securities, which accounted for 6.56% and 6.28% of the market turnover in February, respectively.

Being able to intuitively reflect the number of trading accounts of active ETF customers is also an important indicator for brokers' ETF business. The ranking order of the top three in Shanghai showed no change. Huatai Securities ranked first, accounting for 14.54%, followed by Dongfang Wealth Securities with 11.56%. There is a big gap between the third-place Ping An Securities and the top two, accounting for 5.84%. In other words, in terms of the number of ETF trading accounts, Huatai Securities and Oriental Wealth Securities are leading by an absolute advantage.

However, compared with January, the market share of all three companies declined slightly. Galaxy Securities has gained strength. The number of ETF trading accounts in February increased to 5.14% compared to 4.99% in January. The ranking also rose one place, ranking fourth in the industry.

CITIC Securities continues to rank first among fund market makers

In terms of fund market makers, as of the end of February 2024, there were 19 main market makers in the Shanghai fund market, with 14 general market makers providing liquidity services for 560 fund products, an increase of 1 over the previous period. Of these, 555 funds received main liquidity services. There are 528 ETFs with market makers, accounting for only 97% of all ETFs, covering various types such as stock ETFs, cross-border ETFs, bond ETFs, commodity ETFs, and currency ETFs.

In terms of the number of market making services involving individual brokerage firms, CITIC Securities consistently ranks first in the market in terms of both the number of main market making services provided and the number of general market maker services provided.

Furthermore, in terms of the number of main market making services, Fangzheng Securities and Huatai Securities are equally capable. The number of funds providing main market making services is 375 and 350, respectively. In terms of overall market making services, GF Securities and Huatai Securities ranked second and third.

Furthermore, in terms of market maker evaluations, in February of this year, there were 3,092 market-making service evaluations. In market making evaluations, AA accounted for 23% and A accounted for 45%. Generally, there are 385 market making service evaluations. A accounts for 90% of market making evaluations. The average collective bidding participation rate of leading market makers is 99.66%, and the average effective participation rate for continuous bidding is 86.43%.

In terms of stock ETFs, 15 AA-level market makers were ranked as follows: Fangzheng Securities (130), China Merchants Securities (119), CITIC Securities (88), CITIC Securities (69), GF Securities (67), CITIC Construction Investment (64), Huatai Securities (22), Orient Securities (17), Shenwan Hongyuan (16), Guotai Junan (7), Donghai Securities (3), Haitong Securities (3), and Haitong Securities (3) Securities (1), Guangdong Development Securities (1), Galaxy Securities (1), and Caitong Securities ( 1 piece).

ETF trading volume was active again in February, and the number of 100 billion stock ETFs in the Shanghai and Shenzhen markets increased to 4

By the end of February 2024, there were 694 fund products in Shanghai, with a total asset management scale of 1902,427 billion yuan. Among them, there are 543 ETFs, with a total market capitalization of 1818.872 billion yuan, an increase of 17.29% over January, with a total share of 1416.012 billion shares, an increase of 2.22% over January. The cumulative turnover of ETFs in February was $1884.224 billion, with an average daily turnover of $125.615 billion, an increase of 25.77% over January. It reversed the trend of declining turnover in January.

By the end of February, there were 3 100 billion stock ETFs in the Shanghai market. Huatai Berry Shanghai and Shenzhen 300 ETF, E-Fangda Shanghai and Shenzhen 50 ETF reached 187.537 billion yuan, 117.036 billion yuan, and 112.401 billion yuan respectively. In addition, the number of shares ETFs in the Shanghai and Shenzhen markets surpassed 100 billion yuan to 4 at the end of February. However, as of March 18, the 100 billion stock ETF will also have to be added to the Huaxia Shanghai and Shenzhen 300 ETF. The fund's management scale is 10.367 billion yuan.

Furthermore, the Huatai Berry Shanghai and Shenzhen 300 ETF once reached a management scale of 20.276 billion yuan on March 12, making it the first stock ETF in A-share history to exceed 200 billion yuan. However, due to the decline in net worth and other reasons, the fund's management scale has now declined slightly to 198,346 billion yuan, and another impact of 200 billion yuan is still within reach.

By type, Shanghai equity ETFs (including cross-border ETFs) had a turnover of about 1107.909 billion yuan in February, accounting for about 58.80% of Shanghai ETF turnover. In addition to currency ETFs, the three ETFs with the largest turnover in Shanghai in February were the short-term finance ETF, the Shanghai and Shenzhen 300 ETF, and the China Securities 500 ETF, with turnover of 96.8879 billion yuan and 93,068 billion yuan respectively.

New ETFs to be released in February to take hold of the hottest track

In February, the new products launched by the Shanghai Stock Exchange were quite representative. A dividend ETF was set up, and a cross-border ETF was listed. Cross-border ETFs and dividend ETFs are currently the hottest racetracks, and fund companies are also stepping up their layout.

On February 2, the Dow Jones ETF, a subsidiary of Penghua Fund, was established with an issuance scale of 237 million yuan; on the 7th, the Huaxia China Securities Hong Kong Stock Connect Central Enterprise Dividend ETF was established, raising about 270 million yuan.

With the US 50 ETF, Nikkei ETF, and NASDAQ themed ETF showing high premiums, more and more investors flocked to cross-border ETFs. Penghua issued a Dow Jones ETF at the end of 2023. This is also the first domestic ETF to track the Dow Jones Industrial Average. At the time of promotion, the fund company claimed that this product is the core asset target of the United States, as reflected in the constituent stocks. In the current Dow Jones Index, the financial sector's constituent stocks have the highest weight (20.4%). Subsequent healthcare (19.7%), information technology (19.3%), and industry (14.4%) also account for relatively high and balanced distribution.

Dividend ETFs are also popular fried chicken, so dividend products from central enterprises are also currently the most popular products in the distribution market. In the first 2 months of this year, 8 funds were issued across the market, including the eFangda China Securities Smart Choice Dividend 50 ETF, Ping An Hong Kong Stock Connect Dividend Select Hybrid Launch, Bosch China Securities Dividend Low Wave 100 ETF, Huaan Hang Seng Hong Kong Stock Connect China Central Enterprise Dividend ETF Linked Fund, Xingzheng Global Dividend Blend, and Tianhong Dividend Blend.

With undervaluation, stable profits, and high dividend rates, the market is gradually recognizing the investment value of the central state-owned enterprise dividend theme. Industry insiders, as market value management indicators are included in the central state-owned enterprise management performance assessment, the revaluation of central state-owned enterprises will gradually be realized. This is also the logic of fund company layout.