There was a sharp inflow of capital into the large market index sector last week, with a net capital inflow of 12.069 billion yuan throughout the week.
I. Market Overview
A-share market: Last week (September 02 to September 06), the market performance was poor. The weekly K line of all major stock indexes closed down, and the Shanghai Composite Index fell below 2,800 points, setting a new phased low. By the close of last Friday, the Shanghai Index had a weekly decline of 2.69%, the Shenzhen Index had a weekly decline of 2.61%, and the GEM index had closed down 2.68%. Transactions in the two markets were sluggish, with an average daily turnover of only 584.6 billion yuan.
In terms of global stock markets, Hong Kong stocks also underperformed last week. The Hang Seng Technology Index fell by 3.03% and the Hang Seng Tech Index fell 2.04%; US stocks also pulled back across the board, with the S&P 500 falling 4.25% and NASDAQ falling 5.77% weekly; Europe, Japan, and emerging markets also mostly fell, with the Nikkei 225 index falling the most weekly, reaching 5.84%.
On the commodities side: Brent crude oil plummeted 7.10% to 71.47 US dollars/barrel, and COMEX gold fell 0.03% to 2526.80 US dollars/ounce.
Judging from fund performance, fund products with themes such as heavy auto parts performed relatively well, while funds with themes such as oil and gas energy, science and innovation chips, infrastructure, communications, and Hong Kong Stock Connect central enterprise dividends also performed poorly.
II. Capital flow
Capital flowed heavily into the market index sector, with a net inflow of 12.069 billion yuan for the whole week. In contrast, the small and medium capitalization index sector experienced a large capital outflow, with a net capital outflow of 5.008 billion yuan throughout the week.
Among them, the Shanghai and Shenzhen 300 ETF eFangda, Huatai Berry Fund's Shanghai and Shenzhen 300 ETF, the Shanghai and Shenzhen 300 ETF, and the Shanghai and Shenzhen 300 ETF of Harvest Fund had net inflows of 5.559 billion yuan, 3.258 billion yuan, 1.706 billion yuan, and 1,437 billion yuan respectively last week.
The two ETFs that track Science and Technology Innovation 50 also ushered in large capital inflows this week. The Huaxia Fund Science and Technology Innovation 50 ETF and the E-Fangda Fund Science and Technology Innovation Board 50 ETF had net inflows of 0.724 billion yuan and 463 million yuan respectively last week.
In terms of net capital outflows, four only tracked the net outflows of China Securities 1000 ETF, China Southern Fund China Securities 1000 ETF, China China Securities 1000 ETF, Guangfa Fund China Securities 1000 ETF Index, and Wells Fargo Fund 1000 ETF last week with net outflows of 2.285 billion yuan, 1.033 billion yuan, 0.484 billion yuan, and 241 million yuan.
ETFs tracking the China Securities 500 Index were also sold off last week. China Southern Fund's China Securities 500 ETF and Harvest Fund's China Securities 500 ETF had net outflows of 1.639 billion yuan and 351 million yuan respectively.
III. The rise and fall rate of ETFs
The entire A-share sector declined. Among them, the decline in the financial real estate sector was relatively small, with funds above the scale falling by an average of 1.36%. In contrast, the TMT sector saw the deepest decline, with larger funds falling by an average of 4.01%. Furthermore, the bond ETF sector achieved an increase, with larger funds rising by an average of 0.33%.
Among them, Huaxia Fund's soybean meal ETF performed best last week, with a weekly increase of 3.23%. The increase in automotive-themed ETFs followed, with Cathay Pacific Fund auto ETFs rising 1.39% weekly. Ultra long-term treasury bond ETFs generally closed higher last week. Pengyang Fund's 30-year treasury bond ETF and Huaxia Fund's benchmark treasury bond ETF rose 1.38% and 0.54% on a weekly basis, respectively.
On the downside, the semiconductor theme declined throughout the week. The China-Korea Semiconductor ETF and the Science and Technology Innovation Chip ETF Fund fell 8.13% and 6.08% respectively last week. The performance of Hong Kong dividends-themed ETFs was weak. Hong Kong Stock Connect Central Enterprise Dividend ETF and Hong Kong Stock Dividend ETF fell 6.88% and 6.54% respectively.
4. New ETF products
A total of 35 funds were reported last week, which is an increase from last week's filing number. The declared products include 9 ETFs, the China Securities A500 ETF, the China Securities Shanghai and Shenzhen 300 Index Enhancement Fund, the Xinyuan China Securities 800 Dividend Low Volatility Index Fund, Penghua Hang Seng Hong Kong Stock Exchange High Dividend Index Fund, and the Qianhai Open Source CSIC Shanghai, Shenzhen and Hong Kong Gold Industry Stock Index Fund.
5. Hot news
1. The first batch of China Securities A500 ETFs will be released this week
On September 5, the Securities Regulatory Commission website showed that a total of 10 fund companies, Jingshun Great Wall Fund, Taikang Fund, Harvest Fund, Huatai Berry Fund, Morgan Fund, Yinhua Fund, China Merchants Fund, Cathay Pacific Fund, and China Southern Fund, declared the China Securities A500 ETF. It was officially approved on September 6, and the China Securities A500 ETF will all be issued on September 10.
2. The Securities Regulatory Commission approved Taikang Fund's special account business qualifications and Ruiyuan Fund's QDII qualifications
On September 6, the official website of the Securities Regulatory Commission issued an approval to approve the private asset management business qualifications of Taikang Fund Management Co., Ltd. The private equity asset management business is an important business for fund management companies to further broaden the scope of business, increase business scenarios, and better serve the diversified investment needs of investors.
At the same time, the Securities Regulatory Commission also issued an approval to approve the qualification of Ruiyuan Fund Management Co., Ltd. as a qualified domestic institutional investor. With the increase in investors' demand for overseas asset allocation and the good performance of QDII products, the QDII business has also gradually become the scope of business expanded by fund companies.
3. The central bank suspended increasing its gold reserves for 4 consecutive months
According to the official website of the Foreign Exchange Bureau on September 7, 2024, China's official gold reserve assets were 72.8 million ounces, the same as last month. The central bank has suspended increasing its gold reserves for 4 consecutive months.
Gold ETF inflows continued in April
According to data released by the World Gold Council on September 6, global physical gold ETFs flowed into 2.1 billion US dollars in August. Thanks to continued inflows from May to the end of August, outflows from early to the end of August 2024 narrowed further to $1 billion. Meanwhile, benefiting from the sharp rise in gold prices and recent continuous inflows, by the end of August 2024, the total asset management scale reached 257 billion US dollars, an increase of 20% over the beginning of the year, once again reaching a record high at the end of the month.