On Monday of this week, the A-share market staged a "V"-shaped major reversal, with stock ETF market funds experiencing a "sell more as prices rise" phenomenon, resulting in a net outflow of 17.2 billion yuan for the day. Since last Thursday, stock ETFs have seen a net outflow of funds for three consecutive trading days, with a cumulative net outflow of approximately 23.7 billion yuan, and the net redemption amount per day has shown an increasing trend.

Stock ETFs have a combined net outflow of 23.7 billion yuan over three consecutive days.

On October 14th, the market recovered throughout the day, with all three major indices rising by more than 2% at the close, and over 5,000 stocks turned red. The total turnover for the Shanghai and Shenzhen markets was 1.63 trillion yuan, an increase of 63 billion yuan compared to the previous trading day.

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Against this backdrop, the stock ETF market saw a net outflow of funds of 17.24 billion yuan for the day. In terms of specific categories, broad-based ETFs led the net outflow with 12.548 billion yuan, while Smart Beta ETFs and enhanced ETFs received small net inflows of about 100 million yuan and 150 million yuan, respectively.

Specifically, on October 14th, the China Securities Index Bank saw the highest single-day net inflow, reaching 1.006 billion yuan, while the China Securities 1000 Index led the single-day net outflow for consecutive days, reaching 3.332 billion yuan. In terms of industry, the securities index had a relatively large net outflow, amounting to 1.882 billion yuan.

In terms of individual products, five broad-based ETFs including the Easy Fund ChiNext ETF, Nanfang China Securities 1000 ETF, and Nanfang China Securities 500 ETF, as well as the Guotai China Securities All-Share Securities Company ETF, a single industry-themed ETF, all saw net outflows of funds exceeding 1 billion yuan for the day.

In fact, October 14th marked the third consecutive trading day of net outflows for stock ETFs. Looking back at last Thursday, stock ETFs saw a net outflow of funds of 30 million yuan, ending the previous trend of multiple consecutive days of large net purchases. On Friday, the net outflow of funds for stock ETFs continued, with a single-day net redemption of 6.407 billion yuan. Over the past three trading days, the total net outflow for stock ETFs reached 23.651 billion yuan.

An industry insider analyzed that within a short period of about a week before and after the National Day holiday, the market soared significantly, and the stock ETF market saw a large net inflow for several consecutive days. From a short-term trading perspective, some investors may choose to take profits or sell to break even, leading to the recent net outflow in stock ETFs.

However, the industry insider pointed out that compared to the previous inflow scale, the current outflow is relatively small and is not enough to change the overall trend of funds actively entering the market through stock ETFs recently.

Observing from the perspective of the last five trading days, recent funds have flowed into the ChiNext Index, STAR 50, and the Shanghai and Shenzhen 300 Index, amounting to approximately 35.7 billion yuan, 30.7 billion yuan, and 29.8 billion yuan, respectively.He also indicated that with the implementation of more favorable policies in the future, there is no exclusion that the next wave of substantial net inflows of stock ETF funds might be on the horizon.

Chip and Bank ETFs Favored by Capital

While stock ETFs as a whole are facing net outflows of capital, some products are still attracting funds against the trend.

Wind data shows that yesterday, chip and dividend-themed stock ETFs were at the forefront of the single-day capital inflow list. Specifically, the Harvest SSE STAR Market Chip ETF saw a single-day inflow of 423 million yuan, ranking first.

The recent surge in chip stocks has attracted strong market attention, with a large amount of capital frequently entering through ETFs. In terms of industry, on Monday, the STAR Chip Index entered the top five of single-day net inflows with 321 million yuan.

Among industry-themed ETFs, the Harvest SSE STAR Market Chip ETF was already favored by capital last week, with a cumulative net inflow of funds reaching as high as 16.486 billion yuan over the week.

On October 14th, the Huabao China Securities Bank ETF also saw inflows exceeding 400 million yuan, ranking second on the single-day inflow list. In addition, ETF products focusing on high dividend assets such as the Huitianfu China Securities Bank ETF and the Huatai Bona Low Volatility ETF have all received a significant amount of net capital subscriptions.

Industry analysis suggests that recently, relevant departments have mentioned the issuance of special treasury bonds to support large state-owned commercial banks in replenishing their core tier-one capital. This incremental policy measure is a direct benefit to large state-owned commercial banks, helping to drive up the valuation of bank stocks and fostering a rise in bank stock prices.

It is worth mentioning that some ETFs under the umbrella of top fund companies continue to receive net inflows of capital. On October 14th, the CSI A50 ETF Yifangda and the Hang Seng TECH 30 ETF saw net inflows of 177 million yuan and 128 million yuan respectively on the same day, while the Pharmaceutical ETF, Gold ETF, and Building Materials ETF Yifangda also received varying degrees of net inflows.

In the case of Huaxia Fund's ETFs, on October 14th, the STAR 50 ETF received a net inflow of 330 million yuan, with a scale reaching 112.567 billion yuan, attracting market attention to its investment value. The corresponding tracking index, the STAR 50 Index, has seen its average daily transaction volume over the past month continuously climb to 8.857 billion yuan, indicating excellent market liquidity.