I. Market Overview

A-share market: Last week (August 19th-23rd), the market continued to consolidate, with the Shanghai Composite Index, Shenzhen Component Index, and ChiNext Index all experiencing a volatile decline. The SSE 50 Index stubbornly closed in the positive, while the trading volume of both markets remained sluggish, maintaining at around 500 billion RMB.

In terms of styles, the large-cap blue-chip stocks in the CSI 300 fell by 0.6%, while the growth-oriented SSE Science and Technology Innovation Board 50 and ChiNext Price Index both fell by approximately 2.8%. The small-cap CSI 1000 and CSI 2000 both fell by 3.4% and 4.7% respectively, and the CSI Dividend Index dropped by 1.2%.

At the industry level, home appliances and banks saw gains, while the rest of the industries experienced a general decline. Beauty care, agriculture, forestry, animal husbandry, and medical biotechnology performed poorly.

In terms of fund performance, themed funds focusing on banks, insurance, gold, and home appliances showed relatively good performance, while themed funds focusing on medical care, agriculture, animation games, and photovoltaics performed relatively poorly.

II. Capital Trends

There was a significant inflow of funds into large-cap index sectors, while small outflows of funds were observed in sectors such as commodity ETFs, QDII-ETFs, and financial real estate.

Last week, the non-monetary ETF decreased by 2.081 billion yuan in size, with a net inflow of 30.834 billion yuan. In terms of category, the cross-border Hong Kong stock ETF decreased by 1.851 billion yuan in size, with a net outflow of 0.567 billion yuan; the bond ETF decreased by 0.378 billion yuan in size, with a net outflow of 0.271 billion yuan; the cross-border non-Hong Kong stock ETF increased by 0.092 billion yuan in size, with a net outflow of 0.05 billion yuan; the commodity ETF decreased by 2.163 billion yuan in size, with a net outflow of 2.669 billion yuan; the stock ETF increased by 2.219 billion yuan in size, with a net inflow of 34.391 billion yuan.

Observing the sector's fund flow in the past week, the Shanghai and Shenzhen 300 ETF saw a significant inflow of 24 billion yuan, marking the eleventh consecutive week of significant inflow, leading to a noticeable inflow of funds into broad-based products once again. In addition, the capital inflows of the CSI 1000, Science and Technology Innovation Board 50, SSE 50, and CSI 500 products all exceeded 1 billion yuan. In terms of industry themes, the health care, semiconductor/chip, and biomedical sectors saw the highest capital inflows.

Huatai Bairui Fund CSI 300 ETF, Huatai Securities 300 ETF Yifangda, Huatai Securities 300 ETF Huaxia, and Jiashi Fund CSI 300 ETF had a total net inflow of 23.717 billion yuan last week.

Huaxia Fund SSE 50 ETF had a net inflow of 1.624 billion yuan last week. Yifangda Fund ChiNext ETF had a net inflow of 1.543 billion yuan last week.

Last week, the gold-themed ETF unexpectedly experienced capital sell-off, with Huaan Fund Gold ETF, Yifangda Fund Gold ETF, and Boshi Fund Gold ETF witnessing a total net outflow of 2.427 billion yuan.

Huatai Bairui Fund Hang Seng Tech ETF and GF Fund China Concept H-share ETF had net outflows of 0.348 billion yuan and 305 million yuan respectively last week.

III. ETF Performance Changes

From August 19, 2024 to August 23, 2024, the SSE Composite Index fell by 0.87%; banking, securities, and other sector products led the gains, with Huatai-PineBridge CSI Banks ETF rising more than 3%; in addition, stocks in the gold, real estate finance, and home appliances sectors were active; biopharmaceuticals, agriculture, and aquaculture products showed the largest declines.

ETFs with a banking theme performed the best last week, with Huatai-PineBridge Bank Theme ETF rising 3.06% and Huafu Fund Securities ETF Pioneer rising 2.5%. Cross-border ETFs continued to show strong performance, with China Southern Peak S&P Biotech ETF, China Southern Peak Germany ETF, Southern Fund Japan TOPIX Index ETF, Nikkei 225 Index E Fund, and Huaan Fund France CAC40 ETF rising 2.37%, 2.09%, 2.06%, 1.97%, and 1.81% respectively.

In terms of declines, ETFs with a medical theme generally performed poorly, with the Biomedical ETF, Medical Care ETF, and Hong Kong Innovative Drug ETF all falling by more than 5%.

4. Newly-launched ETF products

Last week, a total of 4 ETFs were listed for trading, including E Fund CSI 300 ETF, GF Fund CNI Grain Industry ETF, Invesco Great Wall CSI Hong Kong Stock Connect Dividend Low Volatility ETF, and ICBC Credit Suisse Shanghai Star Market Biotech ETF.

Last week, 4 new ETFs and other index products were established, including 4 passive index funds.

5. Hot news

The total size of public funds has reached a new historical high, and money market funds have contributed to the growth in scale.

According to data from the China Securities Investment Fund Association, as of the end of July 2024, the size of public funds has reached a new high of 31.49 trillion yuan, an increase of over 400 billion yuan from the end of June. In terms of categories, money market funds have been the main contributors to the growth in scale, with a growth of 191.897 billion yuan in July.

Hedge fund Third Point opened a position in Apple in April.

Dan Loeb's hedge fund Third Point established positions in Apple in April. The company also increased its holdings in Corpay, ICE, and LSEG. The company's Master Fund had a return rate of 1.8% in the second quarter.

The Rongtong CSI Chengtong Central Enterprise Technology Innovation ETF has a first issuance of 1.785 billion, reaching a new high for theme ETFs this year.

According to the latest announcement from E Fund, their E Fund CSI Chengtong Central Enterprise Technology Innovation ETF was established on August 22nd with an initial size of 1.785 billion yuan, setting a new record for the fundraising scale of thematic index ETFs in the market this year.

Trading volume of multiple broad-based ETFs has once again increased.

On August 22, the trading volume of several broad-based ETFs significantly increased, with the cumulative turnover of four HS300 ETFs exceeding 10 billion yuan.