I. Market Overview

A-share market: last week (July 15th-19th) important indexes in the A-share market all rose, and the sci-tech-heavy ChiNext index performed better. The weekly increase of the sci-tech innovation board 50 index was 4.33%. The representative large-cap stocks, SSE 50 and CSI 300 indexes, rose steadily, with nine consecutive daily gains. The Shanghai Composite Index closed at 2982.31 points, up 0.33% for the week; the Shenzhen Component Index closed at 8,903.23 points, up 0.56% for the week; and the ChiNext Price Index closed at 1725.49 points, up 2.49% for the week.

The daily average turnover of the Shanghai and Shenzhen stock markets did not change much, still around 650 billion yuan. The net outflow of northbound funds was 19.323 billion yuan.

In terms of fund performance, fund products with heavy positions in themes such as chips, semiconductors, digital economy, military industry, and consumption performed relatively well, while funds tracking communication, nonferrous metals, home appliances, gaming and media, and banks themes performed relatively poorly.

II. Capital Trends

Last week, the non-monetary ETF increased by 106.344 billion yuan in size, with a net inflow of 84.475 billion yuan. By type, stock ETFs increased by 112.355 billion yuan in size, with a net inflow of 74.751 billion yuan, which was 9.2 billion yuan last week, an increase of more than 7 times; bond ETFs increased by 2.353 billion yuan in size, with a net inflow of 2.416 billion yuan; commodity ETFs increased by 0.123 billion yuan in size, with a net inflow of 0.309 billion yuan; cross-border non-Hong Kong stock ETFs decreased by 2.115 billion yuan in size, with a net inflow of 4.672 billion yuan; cross-border Hong Kong stock ETFs decreased. By 6.372 billion yuan in size, the net inflow was 2.327 billion yuan.

Compared with the week before last, the daily average turnover of some ETFs increased significantly last week. The cross-border non-Hong Kong stock ETF with the highest increase is the Southern Fund Southern Dongying Saudi Arabia ETF; the cross-border Hong Kong stock ETF is the Huatai Bairui Southern Dongying Hang Seng Tech Index ETF; the stock ETF is Huatai Bairui CSI 300 ETF; the commodity ETF is Huaxia Gold ETF; the bond ETF is Huaxia Shanghai Base Market Treasury Bond ETF.

Last Thursday, four CSI 300 ETFs had a surge in trading volume, with a total net inflow of 67.54 billion yuan for Huatai Bairui Fund's CSI 300 ETF, CSI 300 ETF E Fund, Huaxia300 and Jiashi Fund's CSI 300 ETF.

The Southern Fund's CSI 1000 ETF, Huaxia Fund's CSI 1000 ETF, and GF Fund's CSI 1000 ETF had a total net inflow of 14.913 billion yuan last week.

The Southern Fund's CSI 500 ETF and the Huaxia Fund's SSE 50 ETF had a net inflow of 6.695 billion yuan and 4.992 billion yuan, respectively, last week.

In other words, the net inflow of these several broad-based ETFs last week reached as high as 94.141 billion yuan.

In terms of net outflows of funds, theme ETFs of sci-tech innovation, semiconductors, and chips encountered high-frequency shareholding reduction, and leading products Southern Fund's ChiNext 50 ETF, Guolianan Fund's Semiconductor ETF, Huaxia Fund's Chip ETF, GF Fund's ChiNext 50 ETF, and ICBC Credit Suisse Fund's Chip ETF had a total net outflow of 6.925 billion yuan.

III. ETF Performance Changes

Last week, most of the domestic equity assets' broad-based index rose. The CSI 500 fell 0.96%, and the sci-tech innovation board 50, SSE 50, CSI 300, and ChiNext Price Index rose 4.33%, 1.83%, 1.92%, and 2.49%, respectively.

Major bonds asset indexes rose across the board. The ChinaBond-Total Wealth (3-5 years) Index, ChinaBond-Treasury Total Net Price (Total Value) Index, ChinaBond-Medium and Short-term Bond Net Price (Total Value) Index, and ChinaBond-Long-term Bond Net Price (Total Value) Index rose 0.09%, 0.05%, 0.04%, and 0.06%, respectively.

Among overseas equity asset indexes, most cross-border indexes fell. The Nikkei 225, Germany DAX, S&P 500, and Nasdaq indexes fell 2.74%, 3.07%, 1.97%, and 3.65%, respectively, while the Dow Jones Industrial Average rose 0.72%.

Hong Kong stock index fell across the board, Hang Seng Index, Hang Seng Technology, and Hang Seng China Enterprise Index fell 4.79%, 6.49%, and 5.63%, respectively.

Commodity asset indexes fell across the board. COMEX silver, COMEX gold, NYMEX WTI crude oil, and ICE Brent crude oil fell 5.64%, 0.74%, 4.39%, and 2.9%, respectively.

As for ETFs, the defense military industry sector had the highest increase, with the average scale of funds above the average level increasing by 3.40%. On the contrary, the cyclical sector had a relatively deep drop, with the average scale of funds above the average level falling by 1.37%. In addition, the QDII-ETF sector fell the most, with the average scale of funds above the average level falling by 2.88%.

In specific terms, the two newly listed Saudi ETFs performed the best last week, with Southern Fund's Saudi ETF and Huatai Bairui Fund's Saudi ETF rising by as much as 13.46% and 11.43%, respectively. The chip theme performed strongly last week, with Jiashi Fund's Science and Technology Chip ETF, China Merchants Fund's Semiconductor Equipment ETF, and Penghua Fund's Semiconductor ETF up by 7.22%, 6.6%, and 6.03%, respectively.

Chinese concept stocks, Hong Kong network technology stocks and Hong Kong high dividend stocks all fell, with Jiashi Fund's Chinese Internet ETF, Huaxia Fund's Hang Seng Internet ETF and GF Fund's Hang Seng Technology ETF leading the weekly decline, falling by 6.62%, 5.98% and 5.79%, respectively.

Huatai Bairui Fund's Hong Kong Stock Connect Dividend ETF, Boshi Fund's Hang Seng High Dividend ETF and Huaxia Fund's Hang Seng Corporate ETF fell by 5.77%, 5.27% and 5.11%, respectively.

4. Newly-launched ETF products

Four ETFs were listed for trading last week, namely Southern Fund's Southern Dongying Saudi Arabia ETF, Huatai Bairui's Southern Dongying Saudi Arabia ETF, Huaxin SZSE 50 ETF, and E Fund's SSE Star Market 100 Enhanced Strategy ETF.

Seven new ETFs and other index products were established last week, including five passive index funds and three passive index bond funds.

5. Hot news

Qiu Dongrong, the manager of billion-yuan funds, left his post as rumors of resignation came out.

China State-owned Assets Venture Investment Fund announced on July 21 that Qiu Dongrong resigned as the fund manager of five products, including Zhonggeng Value Navigation, due to personal reasons. At the same time, he no longer holds the position of Vice President of China State-owned Assets Venture Investment Fund.

4 300etf created a record again with a trading volume of 29 billion in one day, and the total trading volume of 9 broad-based etfs exceeded 46 billion.

Last Friday, broad-based ETFs traded heavily, with the daily turnover of 4 SSE 300 ETFs reaching 29.014 billion yuan, far exceeding the record of 27.199 billion yuan set on March 5 this year.

Four top SSE 300 ETFs have a combined size of 630.4 billion yuan, setting a new historical high. Specifically, Huatai Bairui's SSE 300 ETF had a net inflow of funds of 98.3 billion yuan within the year, with the largest ETF scale in the market reaching 238.227 billion yuan; Yi Fangda's SSE 300 ETF had the highest net inflow, which exceeded 105.1 billion yuan, with the latest scale being 161.296 billion yuan. At present, there are five equity ETF funds with a scale of over 100 billion yuan in A shares.

Four top-tier SSE 300 ETFs have a combined size of 630.4 billion yuan, creating a new historical high. Huatai Bairui's SSE 300 ETF had a net inflow of funds of 98.3 billion yuan within the year, and this ETF now has the largest scale in the entire market, reaching 238.227 billion yuan. Yi Fangda's SSE 300 ETF had the highest net inflow, exceeding 105.1 billion yuan, and the latest scale was 161.296 billion yuan. Currently, there are five equity ETF funds with a scale of over 100 billion yuan in A shares.

Active US ETFs attract record-high capital.

According to data from Morningstar Direct, with investors expecting the Fed to begin cutting interest rates as early as September, total investments in active and passive mutual funds and ETFs reached $245 billion in the first half of this year, far exceeding the $150 billion in the first half of 2023.

World Gold Council: Global gold ETF inflows reached $1.4 billion in June.

According to the World Gold Council, global gold ETFs saw inflows of $1.4 billion in June, achieving capital inflows for the second consecutive month.