Last week, the ETF market saw a net outflow of 56.932 billion yuan.
I. Market Overview
Last Friday, the A-share market surged with increased trading volume. The Shanghai Composite Index achieved a 16-day consecutive rise, breaking through the 4,100-point mark and reaching a new high in over a decade. The market's turnover exceeded 3.1 trillion yuan, marking the sixth time in A-share history that the daily trading volume surpassed 3 trillion yuan.
Last week (January 5th - January 9th), the A-share market welcomed a strong start to 2026. Major broad-based indices recorded gains, with the All-A Index rising by 5.11%. The STAR 50 Index surged by 9.80%, while both the CSI 1000 and the Beijing Stock Exchange 50 Index rose by more than 5%.
In terms of investment style, small-cap stocks outperformed this week, as the CSI 1000 (+7.03%) posted higher gains compared to the CSI 300 (+2.79%). All five style indices recorded positive returns, with growth-style stocks leading the way, gaining 7.02%.
By sector, most primary industries recorded gains, except for banking, which declined. The top three performing sectors were diversified industries, defense and aerospace, and media.
The trading activity in the A-share market significantly increased last Friday, when the daily trading volume surpassed the 3-trillion-yuan threshold for the first time in 73 trading days. The average daily trading volume last week was 285.2 billion yuan, up by 723.616 billion yuan from the previous week. The average daily turnover rate stood at 2.2363%, increasing by 0.5 percentage points from the prior week. The average daily trading volume of Northbound capital reached 327.151 billion yuan, an increase of 98.647 billion yuan compared to the previous week. As of last Thursday, the total margin financing balance amounted to 2,620.601 billion yuan, up by 79.924 billion yuan from the previous week.
II. Capital Flows
In the ETF market, there was a net outflow of 56.932 billion yuan last week. Equity ETFs saw net inflows of 7.765 billion yuan, commodity ETFs had net inflows of 6.967 billion yuan, and cross-border equity ETFs recorded net inflows of 5.374 billion yuan. In contrast, bond ETFs witnessed massive net outflows of 66.4 billion yuan, while money market ETFs experienced net outflows of 10.607 billion yuan.
Regarding indices, Hang Seng Tech, satellite industry, SGE Gold 9999, Hong Kong Stock Connect Non-Banking, semiconductor materials and equipment, fine chemicals, nonferrous metals, CSI 500, satellite communications, and CSI 300 recorded net inflows of 5.611 billion yuan, 5.232 billion yuan, 4.891 billion yuan, 4.416 billion yuan, 4.296 billion yuan, 3.853 billion yuan, 3.721 billion yuan, 3.666 billion yuan, 3.589 billion yuan, and 3.484 billion yuan, respectively.
AAA Sci-Tech Innovation Bonds, CSI A500, money market funds, CSI Short-Term Financing, Shanghai Bond Market-Making Corporate Bonds, ChinaBond 7-10 Year Policy Financial Bond Full Price (Total Value) Index, Shanghai AAA Sci-Tech Innovation Bonds, ChiNext 50, Guozheng Chip (CNI), and STAR 50 recorded net outflows of 39.671 billion yuan, 13.143 billion yuan, 10.607 billion yuan, 8.408 billion yuan, 4.720 billion yuan, 4.227 billion yuan, 4.059 billion yuan, 3.831 billion yuan, 3.228 billion yuan, and 2.903 billion yuan, respectively.
Hong Kong Stock Connect Non-Banking ETF, Nonferrous Metals ETF, Satellite ETF, CSI 500 ETF, and Huatai Bai Rui CSI 300 ETF recorded net inflows of 4.416 billion yuan, 3.721 billion yuan, 3.589 billion yuan, 3.570 billion yuan, and 3.294 billion yuan, respectively.
Harvest Fund’s Sci-Tech Innovation Bond ETF, Short-Term Financing ETF, Yinhua Fund’s Sci-Tech Innovation Bond ETF, Fidelity Fund’s Sci-Tech Innovation Bond ETF, Yinhua Daily Liquidity ETF, and Huitianfu Fund’s Sci-Tech Innovation Bond ETF recorded net outflows of 9.693 billion yuan, 8.408 billion yuan, 6.951 billion yuan, 6.005 billion yuan, 5.308 billion yuan, and 5.209 billion yuan, respectively.
III. ETF Performance Overview
Last week (January 5, 2026 to January 9, 2026, hereinafter the same), the median weekly return of equity ETFs was 4.31%. Among broad-based ETFs, the median fluctuation range of STAR Market ETFs was 10.15%, achieving the highest returns. By sector, technology ETFs had a median fluctuation range of 7.28%, with the highest returns. Classified by theme, military ETFs had a median fluctuation range of 13.50%, with the highest returns.
In terms of increases, the E Fund Satellite ETF, GF Securities Satellite ETF, Satellite ETF, Satellite Industry ETF, Penghua Satellite ETF, and another Satellite ETF rose 22.46%, 22.42%, 22.19%, 22.13%, 18.86%, and 18.33% respectively last week.
Regarding declines, the Leading Bank ETF, Bank AH Preferred ETF, Dividend Low Volatility ETF (Yongying), 30-Year Treasury Bond ETF, Bosera 30-Year Treasury Bond ETF, and Huitianfu Nasdaq ETF fell -2.00%, -1.93%, -1.27%, -0.73%, -0.72%, and -0.72%, respectively.
IV. Newly Issued ETF Products
This week, nine ETFs will be issued: Penghua Guozheng Consumer Electronics Theme ETF, Yinhua S&P Hong Kong Stock Connect Low Volatility Dividend ETF, Fuguo CSI Smart Selection Shipbuilding Industry ETF, Guotai Hang Seng Biotechnology ETF, China Merchants CSI Photovoltaic Industry ETF, Ping An Hang Seng Hong Kong Stock Connect Technology Theme ETF, Qianhai Open Source Hang Seng Hong Kong Stock Connect Technology Theme ETF, Taikang CSI Nonferrous Metals Mining Theme ETF, and Invesco Great Wall CSI Nonferrous Metals Mining Theme ETF.
V. Hot News
Satellite ETFs and Commercial Space ETFs subject to purchase limits? Multiple fund companies responded that they have 'not received any notice.'
According to The Paper, rumors about 'purchase restrictions on satellite ETFs next week' and 'suspension of subscriptions for commercial space-related ETFs' circulated in the market. Managers of multiple relevant thematic ETFs confirmed that no such notices have been received to date.
The annual commodity index rebalancing will commence on Thursday, with over $11 billion in passive selling expected to impact gold and silver.
Analyst Divyang Shah stated that the commodities sector initiated index rebalancing-related capital adjustments on January 8. Two widely used benchmark indices (the Bloomberg Commodity Index BCOM and the Goldman Sachs Commodity Index GSCI) will adjust their weightings, which in turn will force funds tracking these indices to make corresponding adjustments to their holdings.
