On February 12, despite a volatile uptrend in China's three major stock indices, equity ETFs—including cross-border products—recorded a net outflow of approximately 6.2 billion yuan. Broad-based ETFs tracking indices such as the ChiNext, A500, STAR 50, and CSI 300, along with sector-themed ETFs covering green power, securities insurance, and nonferrous metals, experienced significant capital withdrawals. In contrast, ETFs linked to the CSI 500 and CSI 1000 indices, as well as those focused on Hong Kong-listed tech and internet sectors, attracted net inflows.
This marked the fourth consecutive trading day of net outflows from equity ETFs, bringing the cumulative withdrawal for the week to nearly 20 billion yuan.
As the Lunar New Year holiday approaches, some investors have chosen to exit positions. According to Wind data, total shares outstanding in the equity ETF market decreased by 4.43 billion units on February 12. Based on the average trading price, net outflows reached nearly 6.2 billion yuan. Despite the overall trend, 27 equity ETFs still saw net inflows exceeding 100 million yuan each. Top performers included the CSI 500 ETF (Southern), Hang Seng Tech ETF (Huatai-PineBridge), and CSI 1000 ETF (Southern).
On the same day, the broader ETF market recorded net outflows of 5.63 billion yuan. By category, bond ETFs and Hong Kong market ETFs led inflows, adding 8.18 billion yuan and 2.84 billion yuan, respectively, while broad-based equity ETFs led outflows with 6.01 billion yuan withdrawn.
Data from E Fund Management showed the top five sectors by inflows were the Hang Seng Tech Index (2.38 billion yuan), CSI 1000 Index (1.57 billion yuan), CSI 500 Index (1.44 billion yuan), China Internet Index (950 million yuan), and gold (500 million yuan).
At the index level, short-term financing bonds saw the highest single-day inflow at 6.61 billion yuan, while the A500 Index ETF recorded the largest outflow at 4.71 billion yuan. Over a five-day period, the CSI 1000 and CSI 500 index ETFs attracted inflows exceeding 5.6 billion yuan and 5.5 billion yuan, respectively.
Among equity ETFs, 40 products experienced net outflows of over 100 million yuan. ETFs tracking the ChiNext, A500, STAR 50, and CSI 300 indices, as well as those focused on green power, securities insurance, and nonferrous metals, were among those with the largest outflows.
Leading asset managers continued to see inflows into select ETF products. E Fund’s ETF assets under management grew by 1.73 billion yuan to 662.75 billion yuan on February 12. Key inflows included the China Internet ETF (8.3 billion yuan), Hang Seng Tech ETF (3.6 billion yuan), Hong Kong Internet ETF (1.0 billion yuan), Hong Kong Consumption ETF (900 million yuan), and Robotics ETF (700 million yuan).
At ChinaAMC, the Hang Seng Tech Index ETF and CSI 1000 ETF led inflows with 578 million yuan and 514 million yuan, respectively. Their latest sizes reached 52.51 billion yuan and 15.42 billion yuan, with average daily trading volumes over the past month of 4.96 billion yuan and 4.21 billion yuan. Other notable inflows included the Hang Seng Internet ETF (258 million yuan), along with Free Cash Flow ETF, Robotics ETF, Gold ETF, and CSI 500 ETF, each attracting over 100 million yuan.
Fullgoal Fund noted that active capital has tended to retreat ahead of the holiday, leading to a moderation in trading sentiment from recent peaks. Post-holiday, as liquidity returns, market activity is expected to rebound significantly. This cyclical pattern interacts with style rotations and sector shifts, forming a coherent "Spring Festival effect." Investors are advised to focus on potential style shifts and sector rotations after the holiday, emphasizing high-growth opportunities with improving fundamentals and undervalued cyclical or infrastructure plays.
Great Wall Fund expressed optimism that the market may stabilize after recent fluctuations, suggesting investors could consider holding positions through the holiday. Positive factors include global markets adjusting to potential Fed policy shifts, improving overseas financial conditions, China’s policy shift toward domestic demand stimulation, and regulatory efforts to stabilize capital markets. The firm highlighted that while emerging tech remains a key theme, value stocks may also rebound given extreme valuation divergences and rotation demand. Quality-focused strategies, such as those tracking free cash flow indices, may offer attractive opportunities.
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