On October 22, the A-share market underwent a full-day of volatile adjustment, with all three major indices closing lower. Against the backdrop of falling stock prices, the equity ETF market once again demonstrated a "buy more as prices drop" pattern, with net inflows of nearly 50 billion yuan yesterday, as "bottom-fishing" capital surged significantly compared to previous days.
Among them, ETFs tracking the CSI 300 Index and ChiNext Index led in net inflows, while sector-themed ETFs such as the Semiconductor Materials and Equipment Index ETF saw net outflows. Notably, since the A-share market adjustment began in late September, the equity ETF market has recorded net inflows for 17 consecutive trading days, with cumulative net inflows exceeding 283 billion yuan, and the pace of net inflows has continued to accelerate as the stock market declined.
Yesterday's net inflow of nearly 50 billion yuan into the equity ETF market highlights the regulatory authorities' determination to "make every effort to safeguard the safety and stability of the capital market," with leading broad-based ETF products tracking the CSI 300 Index and STAR 50 Index continuing to see substantial net buying.
CSI 300 Index and ChiNext Index ETFs Lead Net Inflows
Wind data shows that as of October 22, the total scale of 1,615 equity ETFs (including cross-border ETFs) in the entire market reached 3.29 trillion yuan. Amid the stock market decline, the equity ETF market saw net inflows of 49.936 billion yuan.
From a broad category perspective, broad-based ETFs and bond ETFs led in net inflows yesterday, reaching 51.655 billion yuan and 8.843 billion yuan, respectively. At the index level, the CSI 300 Index led in net inflows yesterday, reaching 23.814 billion yuan. From a 5-day perspective, recent capital inflows into the CSI 300 Index exceeded 53.5 billion yuan, while inflows into the ChiNext Index surpassed 19.6 billion yuan.
During the stock market decline, ETFs under leading fund companies continued to see sustained net inflows. The latest scale of ETFs under E Fund reached 640.08 billion yuan. Among them, the ChiNext ETF managed by E Fund had a scale of 81.2 billion yuan, with net inflows exceeding 5.5 billion yuan yesterday; the China Internet ETF managed by E Fund saw net inflows exceeding 700 million yuan yesterday; and the STAR 50 ETF managed by E Fund saw net inflows exceeding 500 million yuan yesterday. In addition, the CSI 300 ETF and Securities ETF managed by E Fund both saw net inflows exceeding 200 million yuan during the same period.
Regarding ETFs under ChinaAMC, the STAR 50 ETF and SSE 50 ETF led in net inflows yesterday, with net inflows of 6.653 billion yuan and 4.525 billion yuan, respectively, and their latest scales reached 109.715 billion yuan and 36.845 billion yuan, corresponding to average daily turnover of 8.224 billion yuan and 2.612 billion yuan for their tracked indices over the past month. In addition, the CSI 300 ETF and Hang Seng Tech ETF managed by ChinaAMC saw net inflows exceeding 3.5 billion yuan and 700 million yuan, respectively, while the Credit Bond ETF and Hang Seng Internet ETF managed by ChinaAMC both saw net inflows exceeding 400 million yuan.
Semiconductor Materials and Equipment Index Sees Net Outflow Exceeding 1.3 Billion Yuan
On the capital outflow side, sector-themed ETFs led in net outflows yesterday, reaching 5.196 billion yuan; in terms of scale changes, sector-themed ETFs saw their scale decrease by 35.499 billion yuan. From an index perspective, the Semiconductor Materials and Equipment Index led in net outflows yesterday, reaching 1.369 billion yuan. At the product level, multiple products such as the Semiconductor Equipment ETF from Guotai and the STAR Semiconductor ETF from ChinaAMC led in net outflows.
Against the backdrop of the stock market decline, several institutions believe that extreme declines may present rebound opportunities and recommend maintaining a balanced portfolio allocation. Guotai Fund stated that market volatility continues to amplify during extreme declines, but a monthly-level rebound opportunity is expected ahead: first, major broad-based ETFs have seen consecutive large net inflows, and multiple listed companies have密集ly announced buyback plans, releasing market stabilization signals; second, the deterioration of the micro trading structure in this round has begun to ease after market adjustments, with crowding indicators such as the trading volume share of the top 5% of stocks and the trading volume share of electronics and communications falling below the year-to-date average; third, after significant retracement of historical gains, equity valuations have returned to low levels. For example, the ChiNext Index PE is below the 10th percentile of history, and PB is below the 30th percentile of history. In terms of allocation, the institution maintains an allocation approach of "AI as the main line plus moderate style balance," appropriately increasing gold allocations during corrections, considering gradual profit-taking in dividend sectors, and waiting for a rebound window in tech stocks after interest rates stabilize and overseas tech rebounds.
Bosera Fund believes that the A-share market is likely to maintain a structural行情 overall in the future. In the medium term, the adjustment in the tech sector has been significant, and valuations in some sub-sectors have been digested fairly thoroughly, but before overseas interest rates and geopolitical disturbances are substantively alleviated, the market is more likely to show a pattern of oscillating bottoming rather than a trend reversal. In terms of allocation, the institution recommends responding to volatility with a balanced framework: dividend assets as a bottom position to hedge against fluctuations; the tech direction should focus on sub-sectors with sufficient prior adjustments and verifiable third-quarter earnings realization capability; resource products still have phased hedging value under supply constraints and geopolitical premiums, but attention should be paid to the transmission of rising oil prices to mid- and downstream costs.
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