The stock market tumbled on Friday, with equity traded index funds (ETF), a bellwether of institutional investment, reviving net inflows and ending the 12-day net outflow of equity ETF.
Data show that as of July 24, during the slump, A-share ETF net inflow of about 1.7 billion yuan, capital bargain-hunting layout trend is obvious. Among them, securities firms, military industry, 5G and other plates are sought after by funds; Shanghai and Shenzhen 300,500 and other broad-based ETF suffered a net outflow of funds.
The market was adjusting last Friday.
The fund bought 1.7 billion yuan against the market.
Last Friday, the stock market adjusted sharply, and the stock ETF once again ushered in the "bottom against the market".
According to the statistics of the stock ETF fund fund calculation model of China Galaxy Securities Fund Research Center, on July 24, the overall net inflow of A-share ETF was 1.709 billion yuan, pressing the stop button for the net outflow for 12 consecutive trading days.
On the whole, the stock market has been "rising first and then suppressing" since July, and the stock ETF market continues to show the operational characteristics of "rising and selling, falling and buying". As of July 24, the overall net outflow of equity ETF since July is 3.97 billion yuan. At the beginning of the month, the stock market quickly broke through 3000 points and charged to 3300 points. On July 6 and 7, net purchases reached 37.314 billion yuan. From July 8 to 23, the stock market fluctuated widely between 3,200 and 3,400 points, resulting in a decline in profit-making effect. Stock ETF suffered a net outflow of funds in these 12 trading days in a row, with an average daily net sale of about 3 billion yuan. During the slump on July 24, bottoming funds braved adjustment and collected chips amid a downturn in which the mainstream index fell more than 3 per cent and the gem fell more than 6 per cent, resulting in a net inflow of 1.7 billion yuan.
In response to this phenomenon, a fund company in Shanghai said that the stock market rose rapidly in early July, with the Prev soaring from 3000 to 3400 in a week or so. Under the stimulation of the money-making effect, investor confidence has been greatly boosted, and a large amount of money has been borrowed to chase the market through stock ETF. Then, the stock market began to fluctuate and fall, and the "fast cow" logic was falsified, forming a sustained net outflow of funds and a short-term "profit-taking" situation. The stock market fell sharply on Friday, the Prev closed at the low of the month, and funds aimed at the opportunity to bargain again.
A large public stock ETF fund manager in Beijing believes that stock ETF products have a clear style and convenient trading, and are an effective tool for investors to track the market. During the stock market boom and fall, smart money will use this investment tool to buy when it plummets and sell when it rises, in order to achieve the goal of asset allocation. From the perspective of the development track of the capital market in recent years, with the increasing number of A-share listed companies and the increasing difficulty of investment, buying broad-based ETF or industry ETF with obvious characteristics to obtain the market index and the average return of the industry has also become the choice of many investors.
Securities firms and military industries are favored.
Wide base ETF suffered net redemption
From the perspective of capital flow, on Friday, brokerage, military industry, 5G and other theme funds were sought after, and more funds were bought net on the floor. Data from the Galaxy Securities Fund Research Center show that ETF, a brokerage owned by Warburg and Cathay Pacific, fell more than 6% on the same day, but the two products received a net purchase of 1.36 billion yuan, with obvious intention of bargain-hunting; the 50ETF of Huaan gem fell 6.47% on the same day, with a net inflow of 822 million yuan. In addition, the military industry ETF under Cathay Pacific and Guangfa Fund received a total net purchase of 425 million yuan, while Huaxia and Yinhua's 5GETF fund had a net inflow of 304 million yuan, which was favored by funds in the adjustment of military industry and 5G plate.
In view of the flow structure of the above-mentioned funds, the fund companies said that because the securities and military industrial sectors have high beta attributes, they will usually become the weather vane of funds when the stock market changes. Moreover, the market of the two sectors is still in a relatively undervalued position in history, and a large adjustment will naturally attract some capital inflows. 5G plate is still in a high demeanor cycle, 5G infrastructure will accelerate the layout and landing this year, the fundamentals of the industry are worth looking forward to.
From the point of view of the net outflow of funds, the broad-based ETF of Shanghai and Shenzhen 300,500 and so on has become the main area of the net outflow of funds.
Data show that as of last Friday's close, Huatai Berry, Huaxia, Castrol's Shanghai and Shenzhen 300ETF all encountered a net sale of funds, with a net outflow of 1.845 billion yuan. Among them, Huatai Berry Shanghai and Shenzhen 300ETF net outflow of about 900 million yuan, Huaxia Shanghai and Shenzhen 300ETF, Castrol Shanghai and Shenzhen 300ETF net outflow of 514 million yuan and 432 million yuan respectively. In addition, the South, Huaxia's China Securities 500ETF, Huaxia SSE 50ETF and other wide-based ETF leading products also showed varying degrees of net outflow.
Beijing, the above-mentioned stock ETF fund managers believe that the market wide-based ETF represents a different market style, the market after a sharp rise in the previous period, accumulated more profit, do not rule out some funds to choose profit-taking. "investors' trading operations between the market index and the industry index show the characteristics of 'selling high and absorbing low', which is still relatively rational on the whole."