I. Market Overview

A-share market: Last week (05/13-05/17), the three major A-share indices closed down. As of Friday's close, the Shanghai Index closed at 3154.03 points, a slight decrease of 0.02% throughout the week, the Shenzhen Securities Index closed at 9709.42 points, down 0.22% throughout the week, and the GEM Index closed at 1864.94 points, down 0.70% throughout the week. The average daily turnover of the Shanghai and Shenzhen markets last week was 840 billion yuan.

Judging from fund performance, fund products with themes such as heavy real estate, building materials, banking, infrastructure, and the Internet have performed relatively well, while funds with themes such as vaccines, rare metals, construction machinery, rare earths, and photovoltaics performed relatively poorly.

II. Capital flow

The size of non-monetary ETFs decreased by 5.521 billion yuan last week, with a net outflow of 11.158 billion yuan. By type, the size of equity ETFs decreased by 15.487 billion yuan, with a net outflow of 10.091 billion yuan; the size of bond-type ETFs increased by 2,535 billion yuan, with a net inflow of 2,465 billion yuan; the size of commercial ETFs increased by 659 million yuan, net inflow of 203 million yuan; the size of cross-border non-Hong Kong stock ETFs increased by 2,836 billion yuan, with a net outflow of 1.55 billion yuan.

Specifically, capital poured into Haifutong Fund's short-term ETF last week, with a net inflow of 2,051 billion yuan. The other two bond-themed ETFs, Ping An Fund Corporate Bond ETF and Haifutong Fund City Investment Bond ETF, had 399 million yuan and 338 million yuan respectively last week

GEM 100 ETF Huaxia also had a large inflow of capital last week, with a net inflow of 933 million yuan.

At the same time, the A50 ETF was favored by capital. The Morgan Fund China Securities A50 ETF Index Fund, Dacheng Fund's China Securities A50 ETF Fund, and Huatai Berry Fund's China Securities A50 ETF had inflows of 550 million yuan, 465 million yuan, and 442 million yuan respectively.

In terms of capital outflows, the Shanghai and Shenzhen 300 ETF and the Shanghai Stock Exchange 50 ETF became the main targets of fund sell-off last week. Huatai Berry Fund's Shanghai and Shenzhen 300 ETF, Harvest Fund's Shanghai and Shenzhen 300 ETF, and eFangda, had outflows of 2,917 billion yuan, 1,165 million yuan, and 826 million yuan respectively.

The Huaxia Fund SSE 50 ETF and Guangfa Fund SSE 50 ETF Index had outflows of 2,064 billion yuan and 441 million yuan respectively last week.

A number of Hang Seng Internet-themed ETFs and China Connect ETFs were also sold off last week. Huaxia Fund Hang Seng Technology Index ETF, E-Fangda Fund's Hang Seng Technology ETF, Huatai Berry Fund Hang Seng Technology ETF, and Huaxia Fund Hang Seng Internet ETF had capital outflows of 1,218 billion yuan, 1,168 million yuan, 645 million yuan, and 521 million yuan respectively last week.

III. The rise and fall rate of ETFs

Most domestic equity asset broad-based indices declined last week. The Shanghai Stock Exchange 50 and Shanghai and Shenzhen 300 rose 0.62% and 0.32% respectively, while the GEM Index, China Securities 500, and Science Innovation 50 fell 0.7%, 0.79%, and 1.66%, respectively.

Major bond asset indices rose across the board. The net price (total value) index of China bonds - long-term bonds, the total net price (total value) index of China bonds - treasury bonds, the total net price (total value) index of China bonds - total wealth (3-5 years), and the net price (total value) index of medium- and short-term bonds rose by 0.5%, 0.19%, 0.18%, and 0.11%, respectively.

Among overseas equity asset indices, most cross-border indices have risen. The Nasdaq Index, S&P 500, Nikkei 225, and Dow Jones Industrial Average rose 2.11%, 1.54%, 1.46%, and 1.24%, respectively. Germany's DAX fell 0.36%.

The Hong Kong stock index rose across the board. Hang Seng Technology, Hang Seng China Enterprises Index and Hang Seng Index rose 3.79%, 3.21%, and 3.11% respectively.

The commodity asset index rose across the board. COMEX Silver, COMEX Gold, NYMEXWTI crude oil, and ICE oil rose 11.47%, 1.89%, 1.61%, and 1.46% respectively.

Specifically, the strongest increase last week was still the Hong Kong Stock ETF. The Huabao Fund Hong Kong Stock Internet ETF, and the Huaxia Fund Hang Seng Internet ETF all rose more than 16% last week.

In terms of decline, cyclical-themed ETFs showed weak performance last week. Cathay Pacific Fund Coal ETF, Guangfa Fund Energy ETF Fund, and Penghua Fund Oil and Gas ETF fell 7.57%, 5.23%, and 4.58% respectively.

4. New ETF products

A total of 5 ETFs were listed and traded last week, namely Ping An China Securities Auto Parts Themed ETF, China Securities Auto Parts Themed ETF, Yinhua China Securities High Dividend Strategy ETF, Cathay Pacific Shanghai Securities State-owned Enterprise Dividend ETF, and Huitianfu CSIC Hong Kong Stock Connect High Dividend Investment ETF. Last week, 4 new ETFs and other index products were established, including 4 passive index funds.

5. Hot news

30 billion debt-based ETF Big Mac is born

The bond ETF market gave birth to a 30 billion “Big Mac”. Haifutong's China Securities Short-Term Finance ETF recently surpassed 30 billion yuan, reaching 30.198 billion yuan, once again reaching a record high.

The Hong Kong Securities Regulatory Commission facilitates access to ETFs to expand development in Hong Kong

The Hong Kong Securities Regulatory Commission believes it is appropriate to extend the existing simplified regulations applicable to main ETFs to active ETFs. The Securities Regulatory Commission will also expand the types of funds to which the simplified requirements apply, provided that these funds have appropriate protection measures and can create significant benefits for the Hong Kong market.

Individual investors held more than trillion yuan in ETFs at the end of last year, accounting for more than half

The Fund Management Department of the Shenzhen Stock Exchange released a white paper on ETF investment and trading (2023), showing that by the end of 2023, the number of ETF holders in Shenzhen had reached 3.28 million (unpenetrated linked funds), an increase of 16% over the end of 2022, and an increase of 6.5 times over the end of 2018.