ETFs Keep Attracting Funds with Over 6.7B Yuan Inflow in a Single Day

Under the impetus of a series of policy "combination punches," the Shanghai Stock Index has recently achieved seven consecutive days of gains, with market funds continuing to use stock ETFs to lay out at low positions.

According to data from the Galaxy Securities Fund Research Center, on September 25th, the net inflow of funds into stock ETFs across the market reached 6.702 billion yuan, maintaining a net inflow of funds for 11 consecutive trading days.

Broad-based leading ETFs with a balanced industry distribution are more favored by funds when the market is at a low point. The net inflow of funds for broad-based ETFs on a single day reached 5.922 billion yuan, accounting for nearly 90% of the total net inflow of funds into stock ETFs for the day. Among them, the CSI 300 ETFs under Hua Tai Bo Rui, Yi Fang Da, and Jia Shi topped the list of single-day net inflows of funds.

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Stock ETFs "attract funds" of 6.7 billion yuan in a single day

On September 25th, driven by emotional fermentation and incremental benefits, the market opened with a gap in the morning, increased in volume, and rose, once recovering 2900 points, but then fluctuated and fell back. The Shanghai Stock Index closed at 2896.31 points, with a gain of 1.16%, and the total transaction amount of the two cities reached 1.16 trillion yuan.

Market funds continue to use stock ETFs to lay out the A-share market. According to data from the Galaxy Securities Fund Research Center, on September 25th, the net inflow of funds into stock ETFs across the market reached 6.702 billion yuan. Since September, there have only been two trading days with a net outflow of funds for stock ETFs across the market, and the total net inflow of funds for September has reached 73.061 billion yuan.

The pace of net inflow of funds under the ETFs of leading fund companies continues. Data shows that on September 25th, the Securities Insurance ETF received a net inflow of 259 million yuan that day. In addition, the CSI A50 ETF Yi Fang Da, Gold ETF, and STAR 50 ETF also received more than 100 million yuan in net inflows.

Data from Huaxia Fund shows that on September 25th, among the detailed categories, broad-based ETFs had the highest net inflow, reaching 5.922 billion yuan; industry ETFs had the highest net outflow, with a net outflow amount of 1.27 billion yuan.

From the perspective of the index, the ETF tracking the CSI 300 index continued to lead in single-day net inflows, reaching 7.242 billion yuan, and has received more than 31 billion yuan in funds in the past five trading days. The net outflow of funds for securities index ETFs was the highest, reaching 972 million yuan.

Among the ETFs under Huaxia Fund, Huaxia Central Enterprise Reform ETF and Huaxia CSI 300 ETF received net inflows of 502 million yuan and 368 million yuan, respectively, with scales reaching 5.767 billion yuan and 140.77 billion yuan, respectively. Among them, the scale of Huaxia CSI 300 ETF broke through 14 billion yuan for the first time.Discussing the outlook, Huaxia Fund believes that the market's downtrend has been sufficiently prolonged. The oversold situation in the early period and the historically low valuation levels have provided prerequisites for the continuation of the subsequent rebound to some extent. The inflection point has already emerged. Although there has been a retreat after the market's overheated sentiment, the index has already shifted from the previous downtrend to a rebound and consolidation range. On an annual basis, the two double-bottom patterns this year are also very much in line with the process of investors' cognitive changes. The index may enter a phased long position interval, and one can wait for the short-term sentiment to return before laying out. The strength of the index may depend on changes in incremental policies and economic momentum, but the bottom range is clear.

Bo Shi Fund stated that since the Mid-Autumn Festival, A-shares have improved amidst fluctuations. With the Federal Reserve's interest rate cut and the addition of domestic policy benefits, the trend of the market fluctuating and strengthening may continue. Investors are advised to continue with asset allocation and maintain patience.

The ETFs such as the CSI 300, central enterprise reform, and dividend are more favored.

In the process of A-shares bottoming out and rebounding, broad-based ETFs remain a tool for investors to seek rebounds, with several broad-based ETFs leading in net inflows of funds.

Data from the Galaxy Securities Fund Research Center shows that on September 25, Huatai-PineBridge CSI 300 ETF, Yifangda CSI 300 ETF, and Harvest CSI 300 ETF topped the daily net inflows of funds, with inflows of 3.505 billion yuan, 1.979 billion yuan, and 499 million yuan, respectively. Huaxia CSI 300 ETF and GF CSI 300 ETF also entered the top ten list of net inflows, with the combined inflows of the above five CSI 300 ETFs approaching 6.6 billion yuan.

In response to a series of measures jointly issued by the central bank, the national financial regulatory authority, and the China Securities Regulatory Commission to create a favorable monetary and financial market environment, on the evening of September 24, Beijing Chengyang Investment Co., Ltd., a wholly-owned subsidiary of China Chengtong Group, announced that it had increased its holdings in several China Chengtong central enterprise ETFs, including the central enterprise reform ETF, the Belt and Road Initiative ETF, and the China State-owned Enterprise ETF.

On September 25, the net inflow of funds for Huaxia Central Enterprise Reform ETF reached 502 million yuan, and the Fuguo Belt and Road Initiative ETF and Nanfang China State-owned Enterprise ETF also had varying degrees of net inflows.

Central Bank Governor Pan Gongsheng previously announced the provision of a special repurchase loan for stock buybacks, supporting bank lending with a 100% reimbursement ratio and a re-lending interest rate of 1.75%. Commercial banks issue repurchase loans at a rate of 2.25%, with the initial quota being 300 billion yuan, without distinguishing between ownership systems, and all listed companies can participate in the use of this tool.

Dividend ETFs, which have a higher proportion of high dividend-paying stocks, are favored by the market, with Huatai-PineBridge Shanghai Dividend ETF's single-day net inflow reaching 302 million yuan.

In terms of net outflows, ETFs tracking the two sectors with larger rebound strength in the past two days, namely the ChiNext and securities sectors, have been "pocketed for safety", and several ETFs tracking these two sectors have experienced net outflows.