ETF Market Review | Cross-border ETFs are active against the trend, S&P 500 ETF rose nearly 7%, the innovative drug sector suffered a sharp decline, and the Hong Kong Stock Connect Yinhua CSI Innovative Drugs Industry ETF fell nearly 5%.

Gelonghui, March 21 | All three major A-share indexes fell today. By the close, the Shanghai Composite Index dropped 1.29%, the Shenzhen Component Index fell 1.76%, the Chinext Price Index decreased by 2.17%, and the Beixin 50 Index declined by 4.17%. The total trading volume of the All Market reached 1579.7 billion yuan, an increase of 103.1 billion yuan compared to the previous day. Over 4,200 individual stocks in the All Market declined. In terms of sector themes, Offshore Equipment, Oil & Gas extraction, Traditional Chinese Medicine, Steel, and the tourism and hotel sector led the gains; while Huawei smartphones, humanoid robots, smart cockpits, AI glasses, and AI PC concept stocks saw the biggest declines. On the ETF side, cross-border ETFs were actively traded against the trend, with Cathay Fund S&P 500 ETF rising by 6.91%, and Southern Fund's SASAC ETF and Huatai-Pb Fund's SASAC ETF rising by 6.2% and 3.63% respectively, with the latest premiums and discounts at 28.35%, 12.92%, and 6.67%. The Oil & Gas sector led throughout the day, with Huatai Fund's Oil & Gas Resource ETF and the Oil & Gas ETF from Boshi both rising more than 1%. The HONGLIETF strategy performed actively, with Yinhua Fund's HONGLIETF for state-owned enterprises rising by 0.92%. The Hong Kong Stock Exchange's Innovative Drug sector recorded significant declines, with the Hong Kong Stock Connect Innovative Drug ETF and the Hong Kong Innovative Drug ETF falling nearly 5%. The Hong Kong Stock Exchange's Network Technology stocks fell, and the Hong Kong Technology 50 ETF dropped by 4.26%.