I. Market Overview

A-share market: Last week (04/29-04/30), A-shares only had two trading days, and the three major indices collectively closed higher. The Shanghai Index hit a new high since this year during the week and reached the 3,100 point mark. As of the close of last Tuesday, the Shanghai Composite Index was up 0.52% weekly, the Shenzhen Index was up 1.30%, and the GEM Index was up 1.90%. The turnover exceeded 1 trillion yuan in both trading days last week, and the cumulative net inflow of northbound capital over the two days was 2,275 billion yuan.

While the A-share market was closed, global stock markets generally rose. The Hong Kong Hang Seng Index has been rising for nine consecutive trading days. The Hang Seng Technology Index rose 6.80% last week; major US stock indexes collectively closed higher, the S&P 500 index rose 0.55%, Nasdaq rose 1.43%, and the NASDAQ China Golden Dragon Index rose 5.53% last week. The increase in the past two weeks has reached 14.86%

Of the 31 Shenwan Tier 1 industries last week, 23 industries rose, 8 industries fell, and the industry rose more and fell less. The three industries with the biggest increases were real estate, household appliances, and pharmaceuticals; the three industries with the biggest declines were non-ferrous metals, building decoration, and petroleum and petrochemicals.

Judging from fund performance, fund products with themes such as heavy storage of science and innovation materials, home appliances, real estate, animation games, and batteries performed relatively well, while funds with themes such as gold, automobiles, non-ferrous, infrastructure, oil and gas performed relatively poorly.

II. Capital flow

As of April 30, 2024, the largest ETF tracking target was the Shanghai and Shenzhen 300, with a total scale of 584.5 billion yuan, followed by Science and Innovation 50 worth 129.4 billion yuan and the China Securities 500 with a scale of 123.5 billion yuan. Among the broad-based stock indices, the Shanghai and Shenzhen 300, Science and Innovation 50, Shanghai Securities 50, China Securities 500, and GEM Index were the largest.

Among the non-broad-based stock indices, securities companies, Hang Seng Technology, China Internet 50, Hang Seng Internet Technology, and National Securities Chips (CNI) are the largest. Hang Seng Technology is the largest overseas stock index, SGE Gold 9999 is the largest commodity index, and the China Securities Short Term Finance Index is the largest bond index.

Last week, the net capital inflow of Shanghai and Shenzhen 300 was up to 3.7 billion yuan, followed by the China Securities 1000 and China Securities 500 Index, and the net outflow from Hang Seng Internet Technology Industry was up to 800 million yuan;

Since the beginning of the year, the maximum net inflow of the Shanghai and Shenzhen 300 was 265.3 billion yuan, followed by the China Securities 500 and China Securities 1000, and the maximum net outflow of the Science and Innovation 100 was 8.8 billion yuan.

III. The rise and fall rate of ETFs

The median weekly gain or decline of 758 stock ETFs last week was 1.36%. The Shanghai Securities Science and Technology Innovation Board New Materials ETF and the China Securities Leading Home Appliance ETF performed well, with higher gains; while the Shanghai, Shenzhen and Hong Kong Gold Industry Stock ETFs and the China Securities Index Auto ETF all performed poorly, and the decline was higher. The median weekly rise and fall of the 20 bond ETFs last week was -0.05%.

Specifically, Harvest Fund's S&P Biotech ETF, China Southern Fund Science and Technology Innovation Materials ETF, Bosch Fund's Leading Home Appliance ETF, and Southern Fund Real Estate ETF rose 5.32%, 5.16%, 4.79%, and 4.52% respectively last week.

Contrary to the decline, Guangfa Fund Tianli Currency ETF, Yongying Fund Gold Stock ETF, Guangfa Fund Auto ETF, and Bosch Fund Central Enterprise Innovation-Driven ETF fell 3.52%, 3.3%, 2.49%, and 1.99% respectively last week.

IV. Changes in fund shares

In the two-day trading day last week, the real estate ETF was still the only industry-themed ETF in the top of the ETF growth list last week. The share of China Southern Fund's real estate ETF increased by 820 million shares last week.

In terms of broad-based indices, Huatai Berry Fund's Shanghai and Shenzhen 300 ETF and Shanghai and Shenzhen 300 ETF eFangda increased their shares by 684 million shares and 394 million shares respectively last week

The shares of China Southern Fund's China Securities 1000 ETF, Huaxia Fund's China Securities 1000 ETF, and China Guangfa Fund's China Securities 1000 ETF Index increased by 624 million shares, 564 million shares, and 273 million shares respectively last week.

In terms of share reduction, capital has begun to reduce holdings of Hong Kong-themed ETFs. Huaxia Fund's Hang Seng Internet ETF's share decreased by 2,058 billion shares last week, while E-Fangda Fund's Hang Seng Technology 30 ETF and Huaan Fund Hang Seng Technology ETF Index Fund decreased their shares by 2,058 million shares, 188 million shares, and 165 million shares respectively last week.

5. Hot news

Overseas ETFs performed well, capital increased leverage to prolong Chinese stocks

By the end of April, the net value of Chinese stock ETFs had rebounded markedly, and returns for some products had been positive in the past year. The flow of capital shows that more and more investors are investing in leveraged ETFs to increase the Chinese stock index. However, some ETFs with significant net worth rebounds experienced capital outflows.

“Cathie Wood” bought BYD ADR for 2 consecutive days

According to daily trading data released by Cathy Wood's Ark Investment Management Company, the company purchased 18,748 shares of BYD ADR through Ark Automation Technology and Robotics ETF (ARKQ), worth about US$1.02 million based on the closing price of the day of US$54.47. The day before, the fund bought 5087 BYD ADR shares.

Commodity ETFs attract $970 million, bulls are not afraid of sticky inflation

Investors are investing in broad-commodity ETFs at their highest level in more than two years as they bet sticky inflation indicates continued strong demand for raw materials. The 20 largest ETF products investing in a basket of commodities have attracted around US$970 million so far this month, the highest level since March 2022, according to institutional data.