ETF Market Review | A-shares Drop 2% Amid Increased Trading Volume, Falling Below 3900 Points; Rare Metal ETF Fund and Rare Metal ETF Plunge 7%

Gelonghui November 21 | The SSE Composite Index closed down 2.45%, failing to hold above the 3,900-point level, while the ChiNext Index fell 4.02%. The total trading volume of the Shanghai, Shenzhen, and Beijing markets reached RMB 1.9836 trillion, representing an increase of RMB 261 billion compared to the previous day. Over 5,000 stocks across the market declined. The lithium battery industry chain led the losses, with lithium mining stocks experiencing widespread limit-downs; computing power hardware-related sectors plummeted significantly, particularly in memory storage; semiconductors, consumer electronics, photovoltaics, and fintech concept stocks also saw substantial declines. In the ETF sector, media stocks rebounded in the afternoon, with Penghua Fund's Media ETF and GF Fund's Media ETF declining by 0.22% and 0.1%, respectively. Bond ETFs performed strongly across the board, with Penghua Fund's 0-4 Local Government Bond ETF and Kechuang Bond ETF Xingye increasing by 4 basis points (bps) and 3 bps, respectively. Rare metal stocks suffered heavy losses, with the Rare Metals ETF Fund and Rare Metals ETF falling by 7.55% and 7.35%, respectively. The new energy sector was entirely negative, as the STAR Market New Energy ETF and Kechuang New Energy ETF dropped by 6.9% and 6.8%, respectively. The semiconductor sector slumped, with the China-South Korea Semiconductor ETF falling by 6.63%.