Last week, there was a net outflow of 3.158 billion yuan from ETFs overall, with bond ETFs experiencing a net inflow of 12.763 billion yuan, stock ETFs seeing a net outflow of 9.858 billion yuan, and cross-border stock ETFs recording a net inflow of 4.756 billion yuan.
I. Market Overview
Last week, the A-share market experienced an overall upward trend, with the All A Index rising by 2.95%. The ChiNext Index performed notably well, increasing by 8.58%, while the Sci-Tech 50, Shenzhen Component Index, and CSI 1000 also saw relatively high gains. The Shanghai Composite Index reached a new intraday high, the highest since December 13, 2021.
In terms of style, the small-cap style outperformed last week, with the CSI 1000 increasing by 4.09%, surpassing the rise of the CSI 300 at 2.37%; the growth style led the performance with an increase of over 5%, while the stability style recorded a slight decline.
From an industry perspective, most primary industries recorded gains last week. Technology stocks showed significant recovery, and active market transactions drove up the performance of the non-bank financial sector. The three industries with the highest gains were telecommunications, electronics, and non-bank financials, while banking, steel, and textiles/apparel saw the largest declines.
II. Fund Flows
Last week, ETFs experienced a net outflow of 3.158 billion yuan overall, with bond ETFs seeing a net inflow of 12.763 billion yuan, stock ETFs experiencing a net outflow of 9.858 billion yuan, cross-border stock ETFs registering a net inflow of 4.756 billion yuan, commodity ETFs having a net outflow of 1.766 billion yuan, and money market fund ETFs facing a net outflow of 9.054 billion yuan.
From the perspective of indices, the Shanghai 50, Hong Kong Stock Connect Internet, CSI 1000, Hong Kong Stock Connect Non-bank and Hang Seng Technology Index saw net inflows of 4.351 billion yuan, 3.580 billion yuan, 3.358 billion yuan, 3.112 billion yuan, and 2.999 billion yuan respectively last week.
Last week, AAA Sci-tech Bonds, the CSI Convertible Bonds, and the China Bond - 30-year Government Bond Wealth (Total Value) Index saw net inflows of RMB 4.306 billion, RMB 3.114 billion, and RMB 2.993 billion, respectively.
In terms of net outflows, the Sci-tech 50, money market funds, Sci-tech chips, ChiNext Index, Guozheng Chips (CNI), CSI All Index Semiconductor, and securities companies experienced net outflows of RMB 11.045 billion, RMB 9.054 billion, RMB 4.575 billion, RMB 3.172 billion, RMB 3.169 billion, RMB 2.586 billion, and RMB 2.060 billion, respectively.
From the perspective of specific products, the SSE 50 ETF, the Harvest Sci-tech Bonds ETF, the Convertible Bonds ETF, the Hong Kong Stock Connect Non-Bank ETF, the Hong Kong Stock Connect Internet ETF, and the 30-year Government Bond ETF recorded net inflows of RMB 4.212 billion, RMB 3.987 billion, RMB 3.114 billion, RMB 3.112 billion, RMB 3.080 billion, and RMB 2.993 billion, respectively.
In terms of net outflows, the Sci-tech 50 ETF, the Yinhua Daily Profit ETF, the Sci-tech Chips ETF, the Semiconductor ETF, the Huabao Tainyi ETF, and the ChiNext ETF experienced net outflows of RMB 7.032 billion, RMB 5.823 billion, RMB 4.038 billion, RMB 2.586 billion, RMB 2.497 billion, and RMB 2.188 billion, respectively.
III. ETF Performance
Last week, most stock ETFs rose. Among them, the A-share Science and Technology Innovation/Start-up Board ETFs experienced the largest increase, with the average rise of large-scale funds at 7.18%. In contrast, the Shanghai-Hong Kong-Shenzhen thematic ETFs (mainly gold stock ETFs) and A-share dividend ETFs saw declines, with large-scale funds averaging a drop of 0.31% and 0.28%, respectively. Additionally, this week, commodity ETFs faced the steepest decline, with large-scale funds averaging a drop of 1.10%.
Specifically, the Wanjia Fund's Science and Technology Innovation Board Growth ETF surged with a premium increase of 19.38% last week. The Financial Technology ETFs from Huaxia, the Financial Technology ETF, the Artificial Intelligence ETF, and the Financial Technology ETF all rose by over 11% last week.
In terms of declines, bank ETFs fell across the board, with the Tianhong Bank ETF and Bank AH Selection ETF dropping by 3.02% and 2.75% respectively last week. The dividend strategy ETFs were in the red, with the 300 Dividend Low Volatility ETF, Dividend ETF State-Owned Enterprises, and Dividend State-Owned Enterprises ETF declining by 1.64%, 1.62%, and 1.59% respectively last week.
IV. New ETF Products
Last week, there were 8 stock ETFs reported in the mainland market; 7 new stock ETFs were established.
This week, 16 ETFs are pending issuance, including the Huabao CSI All-Index Agriculture, Animal Husbandry, and Fishery ETF, the Fortune National Robotics Industry ETF, and the Penghua Start-up Board Comprehensive ETF.
V. Hot News
Bank of America reduced its holdings in Apple and increased its positions in Meta Platforms and Amazon in Q2.
According to the 13F filings, Bank of America increased its holdings in Broadcom, Meta Platforms, JPMorgan, Vanguard Growth ETF, and Amazon in the second quarter. It reduced its holdings in Apple, Pepsi, and others. The company maintains significant positions in Microsoft, NVIDIA, Apple, Vanguard Value ETF, and Vanguard Growth ETF.
Temasek reduces its holdings in JD.com and Alibaba, while increasing its stakes in PDD Holdings and the China Internet ETF.
The 13F filing of Temasek Holdings shows that the Singaporean sovereign wealth fund reduced its holdings in JD.com, Alibaba, and NetEase in the second quarter. It also liquidated its position in Amer Sports, which it had established in the first quarter, and initiated positions in KE Holdings and Xpeng. Additionally, it increased its stakes in PDD Holdings and the KraneShares CSI China Internet ETF, among others.
Fund buybacks have also become a hallmark of the bull market, with Southern Fund making a substantial buyback of 230 million yuan.
Under expectations of a slow bull market, fund companies have further increased their buyback efforts. On the evening of August 10, Southern Fund announced that it has recently used proprietary funds to invest in three of its ETF feeder funds, including A500, with a total investment amount of no less than 230 million yuan, and has committed to holding these investments for at least one year.
