As A-shares shake and pull back, large funds are buying ETFs.

Last week, the A-share ETFs received a net inflow of more than 15 billion RMB, with stock ETFs receiving more than 12.3 billion RMB, and four 300ETFs receiving a net inflow of 8.7 billion RMB.

On June 21st, Huatai Bairui SSE 300 ETF, Yifangda SSE 300 ETF, Huaxia SSE 300 ETF, and Southern Securities Zhongzheng 500 ETF saw a significant increase in trading volume.Last week, Huatai Bairui SSE 300 ETF received a net inflow of 3.05 billion yuan, Yifangda SSE 300 ETF received a net inflow of 2.211 billion yuan, Huaxia SSE 300 ETF received a net inflow of 2.043 billion yuan, and Jiashi SSE 300 ETF received a net inflow of 1.394 billion yuan.

Since June, the SSE Composite Index has fluctuated and adjusted, with funds continuously increasing holdings in ETFs.A-share ETFs received a total net inflow of as high as 49.2 billion yuan, of which equity ETFs received a net inflow of over 34.1 billion yuan. The SSE 300 ETF, Science and Technology Innovation 50 ETF, and CSI A50 ETF were the most popular.

As of June 21, since June, Huatai Bairui SSE 300 ETF has received a net inflow of 4.156 billion yuan; Huaxia SSE 50 ETF, Huaxia STAR50 ETF, ICBC Credit Suisse CSI A50 ETF have all received a net inflow of over 2.3 billion yuan; E Fund SSE 300 ETF, E Fund STAR50 ETF, and Fullgoal SSE Composite Index ETF have all received a net inflow of over 1.5 billion yuan.

This week, the market welcomed the launch of the heavyweight QDII ETF, Southern Fund's Southern Dongying Saudi Arabia ETF (159329) and Huatai Bairui Southern Dongying Saudi Arabia ETF (520830), which went on sale today. The deadline for fundraising is July 2, with a fundraising period of 9 days.

Due to the limited QDII quota, both funds have set upper fundraising limits of 1 billion yuan, with a minimum subscription threshold of 1,000 shares or its integer multiples. Both products operate in the form of cross-listing, with holdings primarily consisting of the South Dongying Saudi Arabia ETF, whose underlying assets are the FTSE Saudi Arabia Index, whose construction model is similar to that of the CSI 50.

According to FTSE Russell, as of the end of May 2024, the top ten weighting stocks in the index were Rajihi Bank (13.10%), Saudi National Bank (8.67%), Saudi Aramco (7.85%), ACWA Power (7.62%), Saudi Basic Industry (6.01%), Saudi Telecom (5.67%), Saudi Arabian Mining (4.92%), Alinma Bank (3.29%), Saudi British Bank (3.19%), and Riyad Bank (3.15%), with a total weight of over 63%.

With a cloth on my head, I am the richest in the world. The Saudi ETF provides A-share investors with a simple and convenient investment tool for layouting the Saudi capital market.Looking ahead, Huatai Bairui Fund stated that as global interest rates gradually enter a downward cycle, the recovery of market risk appetite and the improvement of marginal liquidity are expected to unleash stronger potential in emerging markets represented by Saudi Arabia.

Southern Fund stated that the Southern Saudi Arabia ETF not only provides Mainland Chinese investors with the opportunity to invest directly in the Saudi Arabia market but also helps to promote financial cooperation between China and the Middle East region and promote diversification of global asset allocation. Saudi Arabia, as an important global market, has attracted the attention of many investors. By investing in the Saudi market, Mainland Chinese investors are expected to share in the economic growth of the region, while also introducing new liquidity and vitality to the Saudi capital market.