I. Market Overview

The Shanghai Composite Index has fallen for five consecutive weeks, with a 1.1% drop last week, breaking through the 3,000 point mark. In terms of trading volume, the daily turnover of A-shares continues to drop to around 710 billion yuan. It shrank to 620 billion yuan last Friday, the lowest since the beginning of the year. Northbound funds continued to flow out, with a net outflow of 16.1 billion yuan last week, continuing two weeks of net outflows.

In terms of style, the large-cap blue-chips of the CSI 300 fell 1.3%, while growth styles diverged, with the sci-tech innovation board 50 supported by policy dividends rising 0.5% and the chinext price index falling 2.0%.

In terms of industry, communications, electronics, and construction performed well, while real estate, consumer services, media, and other industries were weaker.

In terms of fund performance, funds with heavy positions in themes such as chips, integrated circuits, cars, consumer electronics, and communications had relatively good performance, while funds tracking themes such as real estate, gaming, film and television media, food and beverage, and innovative drugs had relatively poor performance.

II. Capital Trends

Funds flowed significantly into the large-cap index sectors, with a net inflow of 7.768 billion yuan throughout the week. In contrast, the TMT sector saw a significant outflow of funds, with a net outflow of 3.184 billion yuan throughout the week.

The HS 300 led the way in cash flows into broad-based index products, with 9 billion yuan inflows. In addition, the ChinaAMC Star 50 ETF, the CSI 500 Index, and the Zongzi ETF poured in 1.5 billion yuan, 1.3 billion yuan, and 1 billion yuan respectively, while the chinext price index and SSE 50 products saw outflows of 600 million yuan and 500 million yuan respectively.

In terms of industry themes, funds flowed in heavily into the medical, dividend, and non-bank sectors, while semiconductor/chip funds continued to flow out to the tune of 2.1 billion yuan. Funds for AI, banks, and communications sectors had a slight outflow.

Specifically, HuaTaiBaiRui Fund's CSI 300 ETF, Easy-ETF's CSI 300 ETF, Huawei's CSI 300 ETF, and JiaShi Fund's CSI 300 ETF had net capital inflows of 3.05 billion yuan, 2.211 billion yuan, 2.043 billion yuan, and 1.394 billion yuan respectively.

Southern Fund's CSI 500 ETF, Fuguoguojin's SSE 50 ETF, and Huaxia Fund's ChinaAMC STAR50 ETF last week saw net inflows of 940 million yuan, 716 million yuan, and 655 million yuan respectively.

From the perspective of capital outflows, funds have been continually reducing holdings in semiconductor ETFs at high prices for three consecutive weeks. Last week, Guoainan Fund's semiconductor ETF and Huaxia Fund's chip ETF had net outflows of 720 million yuan and 681 million yuan respectively.

From the perspective of capital flows, the market is more inclined towards core assets and core symbols. Net inflows of scale index ETFs are relatively balanced, and the style of market capitalization is still in play. In terms of Smart-Beta factors, growth factors performed better than value. When high elasticity assets perform well in the market, dividend factors tend to perform relatively poorly, but if you observe the ETF capital flows, you will find that dividend low volatility is still one of the strategies for portfolio allocation.

III. ETF Performance Changes

All sectors of the A-share market fell last week (June 17-21). Among them, the TMT sector had a relatively small decline, with an average decline of 0.04% for size funds. The consumer sector had the deepest decline, with an average decline of 3.66% for size funds. In addition, the commodity ETF sector experienced a rise, with an average gain of 1.04% for size funds.

The semiconductor sector continues to perform actively, with Southern Scientific Innovation Chip ETF and Jiashi Scientific Innovation Chip ETF both rising more than 3%. In addition, consumer electronics and auto sectors have relatively good relative performance, while real estate, education, and gaming sectors have weaker performance.

Specifically, Southern Science and Technology Innovation Board Chip ETF, Jiashi Fund Integrated Circuit ETF, and Tibet East Fortune Fund Chip ETF rose by 3.78%, 3.47%, and 3.38%, respectively, last week. The consumer electronics sector performed well, and CMB Consumer Electronics 50 ETF accumulated an increase of 3.27% last week. Hong Kong dividend stocks were active, and Hua Xia Fund Hong Kong Stock Connect Financial ETF and Hua Xia Fund Hong Kong Stock Connect State-Owned Enterprise ETF rose by 2.72% and 2.52%, respectively, last week.

On the downside, the real estate, gaming, and film and television sectors performed poorly, with CCB ETF, Boshi Fund Education ETF, and Huaxia Fund Gaming ETF falling by more than 6% last week. The innovative drug sector continued to be sluggish, and the innovative drug Shanghai-Hong Kong-Shenzhen ETF fell by 4.71% last week.

4. Newly-launched ETF products

Two products were declared last week. ChinaAMC declared the Shanghai Stock Exchange Science and Technology Innovation Board Growth ETF, and Hua An Fund declared the CSI Low Volatility ETF.

5. Hot news

CSRC: Researching the timely launch of SSE Science and Technology Innovation Board 50 Index futures and options.

The CSRC announced the improvement of transaction mechanisms to prevent market risks. Strengthen transaction supervision and promote stable operation of the Science and Technology Innovation Board. Research and optimize market maker mechanisms and after-hours trading mechanisms. Include Science and Technology Innovation Board ETFs in the FundTransfer platform. Improve designated trading mechanisms and increase trading convenience. Continuously enrich Science and Technology Innovation Board index varieties, improve index compilation methods, and improve the "Shanghai Index" system. Enrich Science and Technology Innovation Board ETF categories and ETF option products, and study the timely launch of the Science and Technology Innovation Board 50 Index futures and options. Optimize the normalization registration mechanism for Science and Technology Innovation Board broad-based index products.

The third bond etf with assets over 10 billion yuan was born this year.

Data shows that as of June 19th, the size of Boshi Zhongzheng Convertible and Exchangeable Bond ETF exceeded 10 billion yuan, reaching 10.098 billion yuan. It is the third bond ETF to break through 10 billion yuan in size this year, following Fuguo Zhengjin Bond ETF and Ping An Corporate Bond ETF.

World Gold Council: global gold ETF net inflows in May were USD 529 million.

According to data from the World Gold Council, global gold ETFs had inflows of $529 million in May, the first monthly inflow in nearly 12 months.

This week, the net outflow of funds for the US Bitcoin ETF exceeded $900 million.

Data tracked by SoSoValue shows that the US spot bitcoin ETF experienced continuous outflows for the fifth consecutive day on Thursday, with a total outflow of over 900 million US dollars last week. Grayscale GBTC and Fidelity FBTC led the outflow, while BlackRock IBIT was the only ETF to record net inflows of capital.