The E Fund CSI Hongkong Bond Investment Theme ETF has outperformed the market, rising by over 58% year-to-date, making it the best-performing securities-themed ETF in the all-market category. It ranks among the top ETFs in terms of year-to-date gains.
The ZHENGQUANETF and QUANSHANGETF have both seen increases this year.
Net inflows into the ZHENGQUANETF were recorded this month.
As of July 28, the E Fund CSI Hongkong Bond Investment Theme ETF (513090) attracted a net inflow of RMB 8.36 billion this month, making it the stock ETF with the highest net inflow. Its latest size is RMB 21.181 billion, with T+0 trading, and an average daily trading volume of RMB 6.534 billion, indicating good liquidity.
Additionally, the ZHENGQUANETF, GUOTAI JUNAN I QUANSHANGETF, and Huaxi QUANSHANGETF attracted RMB 1.575 billion, RMB 494 million, and RMB 374 million, respectively, this month.
The E Fund CSI Hongkong Bond Investment Theme ETF is the only ETF in the market that tracks the Hong Kong Securities Index. It has a management fee of 0.15% and a custodian fee of 0.05%, making it a low-cost investment. The top-weighted stocks include CITIC SEC, HKEX, China International Capital Corporation, Guotai Junan, and GUOTAI JUNAN I, with the top ten constituents accounting for 87% of the total weight.
The brokerage sector has seen an increase in its stock prices this year. In terms of news, several listed securities firms have disclosed their mid-year 2025 performance forecasts, showing explosive growth. Currently, 31 listed securities firms have released their mid-year performance forecasts, all of which have shown a forecasted increase or a turnaround to profitability. Notably, Guolian Minsheng and Huaxi Securities are leading the industry with net income growth rates of 1183% and 1025%-1354%, respectively.
On the other hand, market activity remains high, with trading volumes rebounding and major market indices frequently reaching new highs, directly fueling enthusiasm for the brokerage sector.
Additionally, the recent stablecoin concept has also had a catalytic effect on the securities sector. GUOTAI JUNAN I has officially received approval from the Hong Kong Securities and Futures Commission to upgrade its existing securities license to a comprehensive license that allows it to provide virtual asset trading and related advisory services. This makes it the first Chinese-funded securities firm in Hong Kong to obtain such a comprehensive virtual asset trading service qualification, driving investor interest in the brokerage and diversified financial sectors. Subsequently, the focus will be on the mid-year performance, market turnover, and the stablecoin theme as catalysts for the brokerage sector's performance.
Regarding the brokerage sector, Zhongtai Securities stated that compared to the 9·24 rally in 2024, the current rally in the brokerage sector has the following differences: 1) From a 'bull market' to a 'slow bull market', incremental funds continue to enter the market despite hesitation, with investors gradually shifting from a trading strategy mindset to a holding strategy mindset. Although the slope of the rise in the brokerage sector may be slower, its sustainability could be stronger; 2) 'Anti-internal competition' as a long-term macro narrative, the market may overestimate its short-term impact and underestimate its long-term effects, which can help drive the long-term profit recovery logic in related industries, leading to a rise in the market valuation center; 3) The implementation of the Action Plan for High-Quality Development of Public Funds, for underallocated non-banking sectors, is expected to attract more incremental funds at the turning point of market sentiment, potentially benefiting the brokerage sector more. Among the top ten holdings of actively managed equity funds (including ordinary stock, diversified bond, and flexible allocation types) in Wind, the top ten companies in the brokerage sector by market cap are HTSC A, CITIC SEC A, East Money Information A, CSSW Securities A, China Galaxy A, Soochow, GF SEC A, HTSC H, China Galaxy H, and China International Capital Corporation H, all of which have seen varying degrees of increased holdings, but overall, they remain underallocated.
