Investors who bought into the Hang Seng Tech Index before the Lunar New Year holiday, with a net inflow exceeding 5.9 billion yuan, are experiencing significant volatility. Following the holiday, A-shares opened sharply higher, with many stocks hitting the daily limit. However, on the last trading day before the holiday, A-shares fell, resulting in a net capital outflow of 19.5 billion yuan. In contrast, the Hang Seng Tech Index saw increased buying as it dropped, attracting over 5.9 billion yuan in net inflows in the past five trading sessions. During the holiday period, the index first declined then rose, surging 3.34% in the previous session before plunging again at the next market open, taking bottom-fishing capital on a wild ride.
Net inflows into the Hang Seng Tech Index exceeded 5.9 billion yuan over the past five days. According to Wind data, as of February 13, the total assets of 1,339 stock ETFs (including cross-border ETFs) reached 4.12 trillion yuan. Amid the market decline, stock ETFs experienced a net outflow of 19.475 billion yuan. By category, bond ETFs and Hong Kong market ETFs led net inflows on February 13, at 9.087 billion yuan and 3.116 billion yuan, respectively. At the index level, the CSI Short-term Bond Index saw the largest single-day net inflow of 4.748 billion yuan on February 13. Over a five-day period, the Hang Seng Tech Index attracted over 5.9 billion yuan, while the SGE Gold 9999 Index saw inflows exceeding 2.6 billion yuan.
Notably, during the holiday, the Hang Seng Tech Index fluctuated, ending up 0.47%, after a significant 3.34% jump in the previous session. This provided a welcome rally for investors who had been buying the dip. However, when Hong Kong markets reopened, the index fell sharply again, dropping 2.36% by the midday break.
Against a backdrop of market divergence, ETFs under leading fund houses continued to see net inflows. Among E Fund Management's ETFs, the China Internet ETF saw net inflows of 941 million yuan on February 13, ranking first in the market with a size of 42.809 billion yuan. The Hang Seng Tech ETF attracted 363 million yuan in net inflows, reaching a size of 30.358 billion yuan. Additionally, the Robotics ETF, AI ETF, and Hong Kong Stock Connect Internet ETF each saw net inflows exceeding 100 million yuan. For ChinaAMC's ETFs, the Grid Equipment ETF and Robotics ETF led net inflows in the previous session, with 780 million yuan and 397 million yuan, respectively. Their latest sizes were 18.05 billion yuan and 26.72 billion yuan, with their underlying indices averaging daily turnover of 1.662 billion yuan and 1.404 billion yuan over the past month.
In terms of outflows, broad-based ETFs experienced the largest net outflow in the previous session, amounting to 25.807 billion yuan, with their total assets declining by 46.078 billion yuan. Specifically, the CSI A500 Index saw the highest net outflow of 6.613 billion yuan. ETFs tracking this index, such as the A500 ETF and the A500 ETF Everbright, each saw outflows exceeding 1 billion yuan. Other broad-based products like the CSI 500 ETF, Huatai-PineBridge CSI 300 ETF, and CSI 1000 ETF also ranked among the top for net outflows.
Despite short-term outflows from some broad-based indices, capital remains optimistic about the prospects for A-shares. A bank-affiliated public fund stated that with capital returning after the holiday, A-share liquidity is expected to improve significantly, and the market may experience a volatile upward trend in February. In terms of sectors, price increases are spreading to oil and petrochemicals, as well as food and beverage. AI and semiconductors continue to see positive catalysts, while construction and building materials benefit from major projects under the 15th Five-Year Plan. Accelerated sector rotation is likely to be a key feature of the February market.
A Shanghai-based fund company suggested that by early March, macro policies from the National People's Congress may be introduced, making index fluctuations a potential opportunity for mid-term adjustments. The institution recommended considering strategic positions in AI computing chains, power equipment, and chemical sectors.
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