During the market adjustment period, funds are seeking a &#34;safe haven,&#34; significantly flowing into broad-based ETFs. In fact, since April of this year, broad-based ETFs have shown remarkable &#34;capital absorption&#34; effects. Industry opinions suggest that this may indicate institutional funds are significantly increasing their positions in equity assets.
Recently, the Shanghai Composite Index approached the 4,000-point mark, and market confidence has somewhat rebounded, with funds actively allocating equity assets through stock ETFs (exchange-traded funds).
On April 8, the day of a major rebound in A-shares, broad-based ETFs such as the CSI 500 and CSI 1000, as well as chemical ETFs, saw the highest net inflows. Data shows that as of April 8, a single broad-based ETF had a maximum net inflow of nearly 9 billion yuan since April, with multiple products seeing net inflows exceeding 1 billion yuan; thematic ETFs focused on chemicals and free cash flow also attracted significant capital.
Respondents told the International Financial News that this reflects the current market's risk appetite, which, while becoming cautious, has not led to funds exiting the market but rather to a detailed exploration of structural opportunities.
Highest &#34;Capital Absorption&#34; Nearly 9 Billion Yuan
As the market warms up, broad-based ETFs are once again favored by funds.
Wind data shows that as of April 8, there have been 7 stock ETFs with net inflows exceeding 1 billion yuan this month. Among them, the CSI 500 ETF from China Southern topped the list with a net inflow of 8.959 billion yuan, significantly leading similar products. Other stock ETFs with notable net inflows include: CSI 1000 ETF from China Southern (3.779 billion yuan), CSI 300 ETF from Huatai-PB (1.508 billion yuan), CSI 500 ETF from Harvest (1.486 billion yuan), CSI 1000 ETF from Huaxia (1.463 billion yuan), chemical ETF from Penghua (1.126 billion yuan), and free cash flow ETF from Huaxia (1.005 billion yuan).
It is worth noting that many of the aforementioned broad-based ETFs received significant increases in holdings on April 8, the day of the major rebound in A-shares. Among them, the CSI 500 ETF from China Southern saw a net inflow of 7.409 billion yuan in a single day; the CSI 1000 ETF from China Southern, CSI 1000 ETF from Huaxia, CSI 500 ETF from Harvest, and chemical ETF from Penghua saw net inflows of 2.995 billion yuan, 1.529 billion yuan, 1.468 billion yuan, and 1.01 billion yuan, respectively.
While funds are actively positioning themselves in A-shares, related ETFs in the Hong Kong market have encountered some &#34;cooling.&#34; Data shows that on April 8, among Hong Kong stock ETFs, only the Hong Kong Stock Connect Innovative Drug ETF from Huitianfu had a net inflow exceeding 100 million yuan, reaching 165 million yuan; the Hong Kong Stock Connect Internet ETF from Fuguo, the US-listed Internet ETF from Yifangda, and the Hong Kong Securities ETF from Yifangda all saw net outflows exceeding 500 million yuan that day.
Since the beginning of this month, the stock ETF with the highest net outflow has been the ChiNext ETF from Yifangda, with a net outflow amounting to 2.689 billion yuan
Current More Suitable Balanced Strategy
Regarding the recent phenomenon of continuous capital inflow into small and mid-cap broad-based ETFs, Zeng Fangfang, the wealth public fund operation manager at Paipai Network, stated in an interview with the International Financial News that this indicates a greater focus on small and mid-cap directions that combine valuation attractiveness and growth potential in capital allocation.
&#34;There are three main reasons: First, the matching degree between valuation and performance is relatively good. Some small and mid-cap companies exhibit characteristics of 'low valuation and fast performance growth,' providing a certain cost-performance ratio. Second, there is an emphasis on performance certainty. During the current earnings report season, capital tends to favor targets in high-prospect niche sectors with clear performance growth expectations. Finally, it adapts to the existing capital environment. In the context of limited market increments, the flow of funds into small and mid-cap sectors may produce more pronounced allocation effects. This reflects a cautious risk appetite in the current market, but capital has not exited; instead, it is meticulously exploring structural opportunities,&#34; Zeng Fangfang believes.
At the same time, funds are also inclined to flow into CSI 300, chemicals, and free cash flow ETFs. Zeng Fangfang stated that this indicates a more balanced market allocation approach, presenting a defensive &#34;barbell&#34; structure. On one hand, there is a pursuit of relatively certain cash flow returns in a low-interest-rate environment, serving as the &#34;ballast&#34; of the portfolio. On the other hand, there is attention to cyclical and value opportunities, mainly based on the expectation that the supply-demand pattern of traditional industries may improve under policy guidance, as well as the global commodity cycle.
Moreover, the continuous inflow into broad-based ETFs like the CSI 300 also reflects some funds' long-term core asset allocation in A-shares. Overall, this structure reflects investors' cautious mindset in balancing defense and structural opportunities in a complex environment.
Regarding the relatively &#34;cold&#34; inflow situation of technology growth theme ETFs, Zeng Fangfang believes that it may need to undergo a process of gradually matching performance with valuation. In addition, further support from industrial policies and marginal improvements in global liquidity may also become positive factors driving capital backflow.
Regarding future investment opportunities, China Europe Fund stated that, apart from high-risk preference funds, it is currently advisable to consider systematically increasing attention after the visibility of geopolitical and economic changes improves, and to respond to the upcoming market volatility through a balanced strategy: prioritize attention to the banking sector's role in stabilizing portfolio volatility; secondly, focus on the coal chemical sector expected to exceed expectations in the chemical chain, the oil and gas extraction sector driven by high oil prices, and the significantly improving new energy sector; finally, consider mid-to-long-term technology main lines such as AI hardware, self-controllable themes, innovative drugs, and commercial aerospace.
Reporter: Xia Yuechao
Text Editor: Chen Si

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During the market adjustment period, a large amount of capital flowed into broad-based ETFs, indicating a trend of institutional funds increasing their positions in equity assets. Since April, broad-based ETFs have attracted nearly 9 billion yuan in net inflows, especially during the significant rebound of A-shares on April 8, when several ETFs received substantial increases in holdings. The China Southern CSI 500 ETF topped the list with a net inflow of 8.959 billion yuan, while others like the China Southern CSI 1000 ETF and the CSI 300 ETF also performed well. Despite the market's risk appetite becoming cautious, funds are still actively seeking structural opportunities

腾讯新闻 - 财经

Huatai-PB CSI 300 ETF

China Southern CSI 1000 ETF

China Southern CSI 300 ETF

China Southern CSI 500 ETF

Close to 9 billion yuan at its peak! Broad-based ETFs are being significantly bought again