Fund Investors Bewildered! Hot Chemicals Under Heavy Selling Pressure; Base Metals' Year-to-Date Gains Completely Wiped Out

This week, the Shanghai Composite Index fell below 4,000 points, while the ChiNext Index rose against the trend. Stock ETFs and cross-border ETFs in the Shanghai and Shenzhen markets experienced a total net outflow of 8.76 billion yuan.

In terms of industry themes, ETFs focused on healthcare were favored by funds, while chemical and non-ferrous metal-related ETFs saw sell-offs.

Industry Theme ETFs Net Outflow of 26.2 Billion Yuan

This week, the total trading volume in the Shanghai and Shenzhen markets reached 10.97 trillion yuan, with 4.76 trillion yuan in Shanghai and 6.21 trillion yuan in Shenzhen. As of the latest close, the Shanghai Composite closed at 3,957.05 points, down 3.38% for the week, and the Shenzhen Component Index closed at 13,866.2 points, down 2.9%.

Data shows that the combined net outflow of stock ETFs and cross-border ETFs in Shanghai and Shenzhen was 8.76 billion yuan this week. Broad-based index ETFs saw a net inflow of 9.078 billion yuan, while industry theme ETFs experienced a net outflow of 26.2 billion yuan.

Looking at specific segments, the main broad-based index funds’ overall fund flows show that the CSI 300 had a net inflow of 6.558 billion yuan this week, while the CSI A500 experienced a net outflow of 6.202 billion yuan.

Regarding specific ETFs, the top 10 broad-based index ETFs by size combined had a net inflow of 12.412 billion yuan this week. Notably, the Southern CSI 500 ETF and the Huaxia CSI 300 ETF each saw inflows exceeding 4.3 billion yuan.

Performance of Major Index-Related ETFs This Week

Some analysts point out that ongoing tensions in the Middle East have heightened concerns about prolonged conflict. Additionally, inflation fears triggered by energy shocks have reshaped global interest rate expectations, with markets no longer betting on a rate cut by the Federal Reserve this year. However, securities firms believe that the Middle East conflict will only have a short-term impact on A-shares market sentiment and operation rhythm, without changing the overall market direction.

Chemical, Non-Ferrous Metals, and Other ETFs Were Sold Off

In industry theme ETFs, 28 funds saw net inflows exceeding 100 million yuan this week, including healthcare ETFs, non-ferrous metals ETFs (Tianhong), and green power ETFs (Jia Shi), which increased their shares by 2.374 billion, 865 million, and 461 million respectively, with net inflows of 794 million, 786 million, and 624 million yuan.

On the outflow side, 61 industry theme ETFs experienced net outflows of more than 100 million yuan this week. Among them, chemical ETFs, and non-ferrous metals ETFs (Southern and others) saw reductions of 4.859 billion, 1.696 billion, and 795 million shares respectively, with net outflows of 4.373 billion, 3.477 billion, and 1.577 billion yuan.

It is worth noting that the healthcare ETF (512170) has recently been continuously favored by funds, with fund shares quietly reaching new highs.

Changes in Healthcare ETF (512170) Fund Shares

Some analysts believe that the government work report has listed biomedicine as a new pillar industry, alongside integrated circuits, aerospace, and low-altitude economy, reaffirming policy support for the medical industry and injecting strong confidence. Coupled with industry innovation and capital factors, the enthusiasm for China’s biopharmaceutical industry is expected to continue rising.

Meanwhile, recently popular chemical and non-ferrous metal ETFs experienced significant fund sell-offs this week.

Changes in Chemical ETF (159870) Fund Shares

Changes and Trends in Non-Ferrous Metal ETF (512400) Fund Shares

Some securities firms indicate that the Middle East conflict has driven oil prices sharply higher, raising concerns about inflation. The Fed’s room for rate cuts is compressed in the short term, which suppresses the financial attributes of non-ferrous metals.

Notably, the year-to-date returns of non-ferrous metal ETFs have been wiped out. As of Friday, the secondary market year-to-date return for this ETF was -0.52%.

24 ETFs with Weekly Trading Volume Exceeding 10 Billion Yuan

This week, 24 ETFs had a trading volume exceeding 10 billion yuan, including the A500 ETF and Huatai-PineBridge A500 ETF, each with weekly trading volumes surpassing 40 billion yuan.

It is noteworthy that the S&P Oil & Gas ETF by Jiashi reached a new all-time high this week.

Some securities firms state that U.S.-Iran attacks will add more uncertainty to energy supply and transportation. Under geopolitical influences, short-term oil prices are expected to trend upward. If the U.S.-Iran situation expands to include the Strait of Hormuz and other Middle Eastern countries, there is further potential for oil prices to rise.

5 ETFs to Launch Next Week

While investors often focus on major holdings within funds, the holdings of actively managed funds tend to lag behind market movements. ETF targets are very clear, and tracking newly listed ETFs can often reveal recent hot stocks. The influx of funds from newly launched ETFs is also worth noting.

Currently, one ETF has announced its listing next week, tracking new energy vehicles.

There are five ETFs scheduled for issuance next week, tracking themes such as household appliances, Hong Kong stocks through the Stock Connect, information technology, healthcare via the Stock Connect, and oil and natural gas.

(Source: Daily Economic News)