On Monday,October 14,A-shares saw a significant reversal in the market,demonstrating a “V” shaped recovery.However,amid this recovery,the stock ETF market witnessed a substantial outflow of funds,totaling 17.2 billion yuan.This marked the third consecutive trading day of net outflows for stock ETFs,with a cumulative total of approximately 23.7 billion yuan since last Thursday.The trend indicated an increasing daily redemption amount,showcasing the volatile dynamics within the market.

The market had a buoyant day with major indices climbing over 2%,and more than 5,000 stocks ending the day in the green.The total trading volume on the Shanghai and Shenzhen exchanges was 1.63 trillion yuan,which was an increase of 63 billion yuan compared to the previous trading day.

Despite this positive market environment,the stock ETF sector continued to experience a net outflow of 17.24 billion yuan.Notably,broad-based ETFs led the outflows,with 12.55 billion yuan pulled out.In contrast,Smart Beta ETFs and Enhanced ETFs saw minor inflows of around 100 million yuan and 150 million yuan,respectively.

Focusing on specific indices,the China Securities Banking Index had the largest net inflow of the day,amounting to 1.006 billion yuan,while the CSCI 1000 index faced the most significant outflow,reaching 3.332 billion yuan.From an industry perspective,the securities index recorded a sizable net outflow of 1.882 billion yuan.

When examining individual products,several broad-based ETFs,including the E Fund ChiNext ETF,Southern CSI 1000 ETF,and Southern CSI 500 ETF,experienced net outflows exceeding 1 billion yuan each,as did the Guotai CSI All-Share Securities ETF.

It's important to note that October 14 marked the third consecutive trading day of outflow for stock ETFs.Looking back to last Thursday,a mere 3 million yuan was net withdrawn,ending an extended period of significant net inflows.Friday saw a continuation of this trend with net redemptions amounting to 6.407 billion yuan.Over the recent three trading days,stock ETFs have cumulatively seen net outflows of 23.651 billion yuan.

An industry insider analyzed that the market had surged significantly in just a week around the National Day holiday,resulting in substantial net inflows into stock ETFs for several days.From a short-term trading perspective,some investors might have opted to secure profits or recoup their investments,leading to this recent switch to net outflows.

However,the insider emphasized that the current net outflow is relatively small compared to the prior inflows and isn’t substantial enough to change the overarching trend of capital actively seeking entry into the stock market through ETFs.

Examining the last five trading days,notable inflows have been observed in major indices like the ChiNext,STAR Market 50,and CSI 300,attracting approximately 35.7 billion yuan,30.7 billion yuan,and 29.8 billion yuan respectively.

Furthermore,with the anticipated implementation of more favorable policies,there’s potential for the capital influx into stock ETFs to surge again in the near future.

Interestingly,amidst the overall outflow in stock ETFs,certain products have managed to attract significant capital.According to Wind data,ETFs focusing on semiconductor and dividend strategies topped the list for net inflows.For instance,the Harvest SSE STAR Market Chip ETF saw a net inflow of 423 million yuan,ranking first in terms of single-day net inflow.

The recent soaring interest in semiconductor stocks has garnered considerable market attention,prompting significant funds to enter via ETFs.The STAR Chip Index also saw itself among the top five for single-day net inflows,totaling 321 million yuan.

Moreover,in industry-specific ETFs,the Harvest SSE STAR Chip ETF was notably favored last week,racking up a total net inflow of 16.486 billion yuan over the week.

On October 14,the Huabao CSI Banking ETF likewise registered net inflows surpassing 400 million yuan,securing its position as the second-highest net inflow product for the day.Additional ETFs focusing on high dividend yield assets,such as the Huitianfu CSI Banking ETF and Huatai-PB Low Volatility Dividend ETF,also garnered substantial net subscriptions.

Industry experts note that recent policy announcements regarding special government bonds to bolster large state-owned commercial banks’ core tier one capital have provided direct benefits to these banks,ultimately enhancing bank stock valuations and potentially igniting a rally in bank stocks.

It is also worth mentioning that top fund companies have seen some of their ETFs consistently attract net inflows.On October 14,the E Fund A50 ETF and the Hang Seng Tech 30 ETF saw inflows of 177 million yuan and 128 million yuan respectively,while various ETFs such as those focusing on pharmaceuticals,gold,and building materials also experienced varying degrees of net inflow.

Finally,from Huaxia Fund’s offerings,the STAR 50 ETF reported a net inflow of 330 million yuan on October 14,bringing its total scale to 112.567 billion yuan,highlighting its attractiveness in the investment landscape.Correspondingly,the average daily trading volume for the STAR 50 Index has been rising,currently peaking at 8.857 billion yuan,demonstrating excellent market liquidity.