Capital floods into ETFs.
I. Market Overview
Last week, the performance of major broad-based indices in the A-share market diverged. The Shanghai Composite Index, CSI 500, and CSI 300 ranked at the top with returns of 0.03%, 0.00%, and -0.28%, respectively, while the STAR 50 Index, ChiNext Index, and Shenzhen Component Index lagged behind with returns of -2.99%, -2.26%, and -0.89%, respectively.
In terms of sectors, commerce retail, consumer services, and non-banking finance outperformed last week with returns of 6.58%, 4.4%, and 2.99%, respectively. Meanwhile, electric equipment and new energy, electronics, and machinery underperformed with returns of -3.09%, -3.02%, and -1.71%, respectively.
II. Capital Flows
Last week, the ETF market saw a net inflow of RMB 87.1 billion. Equity ETFs recorded a net inflow of RMB 61.9 billion, QDII equity ETFs had a net inflow of RMB 6.861 billion, bond ETFs attracted a net inflow of RMB 19.962 billion, commodity ETFs brought in a net inflow of RMB 320 million, and money market ETFs experienced a net outflow of RMB 1.94 billion.
In terms of indices, the CSI A500, AAA Sci-Tech Innovation Bond, Hang Seng Tech Index, ChiNext Index, CSI 500, Hong Kong Stock Connect Internet, STAR 50 Index, 0-4 Year Local Government Bond Index, CSI 1000, and Dividend Low Volatility Index recorded net inflows of RMB 32.643 billion, RMB 18.02 billion, RMB 5.237 billion, RMB 3.366 billion, RMB 3.068 billion, RMB 2.901 billion, RMB 2.73 billion, RMB 2.44 billion, RMB 2.36 billion, and RMB 1.628 billion, respectively.
The China Short-Term Financing Coupon Index, money market funds, Military Leading Enterprises Index, CGB-30-Year Treasury Bond Wealth (Total Value) Index, CSI Military Industry, China Convertible Bond and Exchangeable Bond Index, Securities Company Index, Animation and Gaming Index, China Liquor Index, and China Banking Index recorded net outflows of RMB 2.795 billion, RMB 1.94 billion, RMB 1.878 billion, RMB 1.607 billion, RMB 1.532 billion, RMB 1.247 billion, RMB 1.15 billion, RMB 649 million, RMB 638 million, and RMB 630 million, respectively.
A500ETF Southern, A500ETF Huatai Boyu, Sci-Tech Innovation Bond ETF Harvest, A500ETF Fund, Sci-Tech Innovation Bond ETF YinHua, CSI A500 ETF, ChiNext ETF, and A500ETF E Fund recorded net inflows of RMB 10.111 billion, RMB 8.667 billion, RMB 5.346 billion, RMB 4.273 billion, RMB 3.666 billion, RMB 3.158 billion, RMB 3.084 billion, and RMB 2.697 billion, respectively.
Short-Term Financing Coupon ETF, Military Leading Enterprises ETF, 30-Year Treasury Bond ETF, Convertible Bond ETF, Military ETF, Securities ETF, and HuaBao TianYi ETF recorded net inflows of RMB 2.795 billion, RMB 1.878 billion, RMB 1.607 billion, RMB 1.247 billion, RMB 935 million, RMB 834 million, and RMB 639 million, respectively.
III. ETF Performance Overview
Last week (December 15 to December 19, 2025, hereinafter), the median weekly return for equity ETFs was -0.26%. Among broad-based ETFs, the median gain/loss for SSE 50 ETFs was 0.67%, the highest among them. By sector, the median gain/loss for large financial ETFs was 1.22%, the highest. Classified by theme, the median gain/loss for military ETFs was 2.56%, the highest.
Specifically, the Satellite ETF E Fund, Tourism ETF, Tourism ETF, Satellite ETF, and Satellite Industry ETF gained 7.04%, 6.77%, 6.71%, 6.54%, and 6.48%, respectively.
Hong Kong Information Technology ETF, S&P Oil & Gas ETF, China-Korea Semiconductor ETF, STAR Market Chip Design ETF, Nasdaq Biotechnology ETF, and Photovoltaic ETF Leader fell 5.24%, 4.91%, 4.80%, 4.28%, 4.24%, and 4.16%, respectively.
IV. Newly Issued ETF Products
A total of 41 funds were reported last week, representing a decrease compared to the number reported in the previous week. The reported products included one REIT, one QDII, two FOFs, as well as products such as the Yongying CSI Animal Husbandry and Breeding Industry ETF, Taikang CSI Nonferrous Metals and Mining Theme ETF, and GF S&P Hong Kong Stock Connect Low Volatility Dividend ETF.
Last week, 40 new funds were established with a combined issuance scale of RMB 18.321 billion, marking an increase from the previous week. Additionally, 22 funds entered the issuance stage for the first time last week, and 19 funds are scheduled to begin issuance this week.
V. Hot News
1. China's asset management scale exceeded RMB 80 billion in Q3.
On December 17, the latest data released by the Asset Management Association of China showed that, as of the end of Q3 2025, the total scale of asset management products managed by fund management companies and their subsidiaries, securities companies and their subsidiaries, futures companies and their asset management subsidiaries, and private fund management institutions reached RMB 80.03 trillion.
2. The first shipping ETF has arrived.
On December 19, Fullgoal Fund and China State Shipbuilding Corporation jointly held the launch event for the CSI Smart Selection Shipping Industry Index Fund in Shanghai, officially unveiling the market's first shipbuilding-themed ETF (subscription code: 560713, fund code: 560710).
3. Year-to-date ETF scale growth exceeds RMB 2 trillion.
As of December 19, 2025, the total scale of China's ETF market has reached RMB 5.83 trillion, representing a significant 56% increase from RMB 3.73 trillion at the end of 2024, with a net increase of RMB 2.09 trillion. This highlights growing investor recognition and preference for index-based investment tools. As an efficient, transparent, and low-cost investment vehicle, ETFs continue to attract a diverse range of participants, including individual investors, institutional capital, and long-term allocation-focused funds.
