This week, the net inflow into the ETF market reached RMB 114.485 billion.
I. Market Overview
This week, the market experienced volatility and divergence. The Shanghai Composite Index mainly fluctuated, while the Shenzhen Component Index and the ChiNext Index both hit new highs before retreating on Friday. Technology innovation indices led the gains, with the STAR 50 Index and the STAR Composite Index rising by 6.47% and 2.99%, respectively. The ChiNext 50 and ChiNext Index increased by 2.5% and 1.96%, respectively. Trading volume significantly declined compared to previous levels, ranging between RMB 2 to 2.4 trillion.
According to the first-level industries of Shenwan, the electric power equipment, non-ferrous metals, electronics, environmental protection, and media sectors posted significant gains, while social services, general industries, retail, light manufacturing, textiles and apparel, and food and beverage sectors saw notable declines.
Based on Wind's popular concept indices, semiconductor wafers, semiconductor equipment, and wafer industry sectors led the weekly gains, while unified large markets, copper-clad laminates, and weight-loss drugs segments underperformed.
II. Fund Flows
On September 24, the second batch of 14 Sci-Tech Innovation Bond ETFs were listed, with net inflows exceeding RMB 60 billion on the first day of listing. As a result, this week’s ETF market recorded a net inflow of RMB 114.485 billion, including RMB 77.936 billion for bond ETFs, RMB 29.067 billion for equity ETFs, RMB 4.042 billion for cross-border QDII equities, RMB 3.038 billion for commodity ETFs, and a modest net inflow of RMB 400 million for money market ETFs.
The ETF market continued to see net outflows in broad-based ETFs and net inflows in sector-themed ETFs. Among ETFs tracking major broad-based indices, only those tracking the CSI A500 saw net inflows, while those tracking the CSI 300 and STAR 50 recorded net outflows of over RMB 5 billion each. In sector-themed ETFs, semiconductor, robotics, and non-banking financial ETFs saw relatively higher net inflows.
From an index perspective, AAA Sci-Tech Innovation Bonds, Shanghai AAA Sci-Tech Innovation Bonds, CSI A500, Semiconductor Materials & Equipment, Sci-Tech Innovation Chips, Robotics, SGE Gold 9999, Securities Companies, and Hang Seng Tech recorded net inflows of RMB 65.705 billion, RMB 15.757 billion, RMB 10.480 billion, RMB 4.239 billion, RMB 3.387 billion, RMB 3.062 billion, RMB 2.924 billion, RMB 2.856 billion, and RMB 2.040 billion, respectively, this week.
HS300, Sci-Tech 50, ChinaBond 7-10 Year Policy Bank Bond Full Price (Total Value) Index, Sub-sector Chemicals, CSI 500, Photovoltaic Industry, Rare Earth Industry, SSE Investment Grade Convertible Bonds & Exchangeable Bonds, and SZSE Market-Making Credit Bonds recorded net outflows of RMB 4.818 billion, RMB 3.300 billion, RMB 2.020 billion, RMB 1.298 billion, RMB 1.166 billion, RMB 1.092 billion, RMB 1.079 billion, RMB 0.824 billion, and RMB 0.752 billion, respectively.
In terms of specific ETF products, CIB Sci-Tech Innovation Bond ETF, ICBC Sci-Tech Innovation Bond ETF, HTF Sci-Tech Innovation Bond ETF, Guotai Sci-Tech Innovation Bond ETF, and Yinhua Sci-Tech Innovation Bond ETF recorded net inflows of RMB 10.245 billion, RMB 8.513 billion, RMB 8.136 billion, RMB 7.988 billion, and RMB 7.458 billion, respectively, this week.
Sci-Tech 50 ETF, HS300 ETF, Government Financial Bond ETF, E Fund HS300 ETF, Chemical ETF, and Harvest Rare Earth ETF recorded net outflows of RMB 2.641 billion, RMB 2.228 billion, RMB 2.020 billion, RMB 1.261 billion, RMB 1.140 billion, and RMB 0.943 billion, respectively.
III. ETF Performance
The median weekly gain/loss for equity ETFs this week was 0.96%. The Semiconductor Equipment ETF and Chip Equipment ETF performed well, with relatively higher gains; among them, the E Fund Semiconductor Equipment ETF gained the most, rising by 16.18%. Meanwhile, Tourism ETF and Sci-Tech Innovation Pharmaceutical ETF performed relatively poorly, with more significant declines; notably, the Tourism ETF fell the most, dropping by 6.18%.
E Fund Semiconductor Equipment ETF, Chip Equipment ETF, Semiconductor Equipment ETF, Semiconductor Materials ETF, and Semiconductor Equipment ETF Fund rose by 16.18%, 16.00%, 15.93%, 15.35%, and 15.13%, respectively, this week.
The Tourism ETF, Tourism ETF, Huitianfu Sci-Tech Innovation Pharmaceuticals ETF, Guotai Sci-Tech Innovation Pharmaceuticals ETF, and HK Stock Connect Consumer ETF fell by 6.18%, 6.00%, 5.31%, 4.93%, and 3.86%, respectively, last week.
IV. New ETF Products
Based on the fund listing date, a total of 21 new ETFs were listed this week, including seven equity ETFs and 14 technology innovation bond-related ETFs, such as the 14 technology innovation bond ETFs like the Wanjiashen AAA Technology Innovation Corporate Bond ETF (159110.OF) and seven equity ETFs like the Yinhua ChiNext Composite ETF (159288.OF). Based on the fund establishment date, a total of 11 new ETFs were established this week, including two dividend-related ETFs like the Fortune China State-Owned Enterprises Dividend ETF (563890.OF), as well as nine other equity ETFs like the Invesco Great Wall Hang Seng Hong Kong Stock Connect 50 ETF (159109.OF), with a total issuance size of RMB 6.297 billion.
In the past week, four new ETF products initiated subscriptions, including those tracking the Hang Seng Biotechnology, CSI 800 Free Cash Flow, CSI Satellite Industry, and SSE 580 indices. Seven new ETFs were established in the past week, with a total fundraising scale of RMB 4.577 billion. One ETF tracking the Hang Seng Tech Index completed fundraising within one day, raising over RMB 1.2 billion. The fundraising scale of the SOE Dividend ETF and Low Volatility Dividend ETF was smaller than that of the Hong Kong stock investment ETF. Five new ETFs were filed for approval in the past week, including three thematic ETFs focused on photovoltaics, robotics, and chip design.
V. Hot News
1. Ethereum and Bitcoin spot ETFs recorded the largest weekly outflows.
As prices of most mainstream global cryptocurrencies declined, Ethereum spot ETFs experienced the highest weekly outflows in history. According to SoSoValue data, during the week ending September 26, total outflows from these ETFs reached USD 795.6 million, with weekly trading volume exceeding USD 10 billion. This outflow slightly exceeded the second-highest record for such funds. Bitcoin spot ETFs also recorded significant weekly outflows, with total outflows from currently listed funds reaching USD 902.5 million.
2. Gold is expected to rise for a third consecutive quarter, driven by safe-haven demand and ETF inflows.
Supported by escalating geopolitical tensions, inflows into gold ETFs, and a general risk-off sentiment in the market, gold is trading just below record levels and is poised for a sixth consecutive weekly gain. The price of gold has surged strongly this year, driven by consistently robust central bank purchasing demand and expectations of the Federal Reserve restarting its easing cycle, repeatedly reaching new all-time highs. Gold is on track to achieve gains for a third consecutive quarter.
In terms of market performance, there has been rotation among sectors such as lithography machines, chips, robotics, solid-state batteries, and liquid cooling. Currently, A-share indices are showing some divergence, with declining trading volumes reflecting pre-holiday effects. However, the three major indices remain in an overall upward trend, warranting continued observation.
