The "giant" product in stock ETFs has been "upgraded" again.
According to Wind statistics, as of September 24, the scale of Huatai-Pine沪深300ETF and Yifangda沪深300ETF reached as high as 311.4 billion yuan and 211.4 billion yuan, respectively. At present, only these two stock ETFs have a scale exceeding 200 billion yuan in the entire market.
This year, institutional funds have contributed a lot to the scale growth of broad-based ETFs. For example, the top ten holders of the above two products are all institutions, and the net asset value at the end of the first quarter of this year was less than 200 billion yuan and 150 billion yuan, respectively. In addition to沪深300ETF, since the third quarter, growth-style ETFs have also become more favored by funds.
21st Century Economic Report reporters combed through and found that from the perspective of fund share changes, from July 1 to September 24, in stock ETFs, the one that received the most additional positions was Huatai-Pine沪深300ETF, with an increase of 30.3 billion shares, followed by Huaxia沪深300ETF, with an increase of 11.7 billion shares; followed by Nanfang Zhongzheng 1000ETF, Yifangda Kechuang 50ETF, and Yifangda ChiNext ETF, with shares increasing by 11.3 billion, 10.7 billion, and 9.7 billion, respectively.
Advertisement
It is worth noting that under the support of favorable policies, the domestic ETF market is expected to further expand. On September 24, the China Securities Regulatory Commission stated that the next step will further optimize the registration of equity fund products, vigorously promote the innovation of broad-based ETF and other index products, and launch more ETF fund products including ChiNext and Kechuang boards in a timely manner; at the same time, the China Securities Regulatory Commission will work with relevant parties to further support the Central Huijin Company to increase its holding efforts, expand the scope of investment arrangements, and promote the entry of various medium and long-term funds including the Central Huijin Company into the market.
Growth ETFs received a large increase in positions
On September 24, relevant departments released a policy package that benefits the real estate market, capital market, new quality productive forces, and other fields, greatly boosting the A-share market. On that day, the Shanghai Composite Index and Shenzhen Component Index rose by more than 4%, and the ChiNext Index surged by 5.54%.
When A-shares rebounded sharply, funds continued to flow into stock ETFs. According to WIND statistics, on September 24, the net inflow of stock ETFs was 18.296 billion yuan, and the total fund shares increased by 6.349 billion shares.
Among them, in addition to沪深300ETF, the Zhongzheng 1000ETF representing the overall performance of small-cap stocks, the Kechuang 50ETF representing the performance of leading sci-tech innovation companies, and the Zhongzheng 500ETF representing the performance of small and medium-cap stocks also received more net subscriptions. For example, on that day, the fund shares of Nanfang Zhongzheng 1000ETF increased by 1.534 billion shares, second only to Huatai-Pine沪深300ETF (which increased by 2.173 billion shares).
In fact, it's not just on September 24, but since the third quarter, the signs of funds adding positions to growth-style ETFs against the trend are very obvious.WIND statistical data shows that from July 1st to September 24th, among stock ETFs, the top ten products in terms of fund share growth are: Huatai-Pine沪深300 ETF, ChinaAMC沪深300 ETF, Southern Zhongzheng 1000 ETF, Yifangda Sci-Tech Innovation Board 50 ETF, Yifangda ChiNext ETF, Harvest沪深300 ETF, ChinaAMC Shanghai 50 ETF, ChinaAMC Zhongzheng 1000 ETF, Southern Zhongzheng 500 ETF, and GF Zhongzheng 1000 ETF.
The fund shares of these 10 products increased by 30.3 billion, 11.7 billion, 11.3 billion, 10.7 billion, 9.7 billion, 9 billion, 8.6 billion, 5.1 billion, 4.5 billion, and 4.5 billion respectively.
It can be observed that since the third quarter, among the top ten stock ETFs in terms of fund share growth, in addition to 4 ETFs tracking the broad market index, the other 6 are all ETFs pointing to growth style.
Furthermore, compared to the second quarter, the preference of funds flowing into ETFs has obviously changed since the third quarter.
According to WIND statistics, in the second quarter of this year, market funds mainly increased their positions in medical ETFs, Shanghai-Hong Kong Stock Connect 300 ETFs, pharmaceutical ETFs, Sci-Tech Innovation Board 50 ETFs, securities ETFs, real estate ETFs, and A50 ETFs. The shares of these ETFs increased by 3 billion to 5 billion.
In the view of industry insiders, the preference of funds for growth style ETFs may indicate that the market is undergoing changes.
"Investors' attention to growth stocks has increased compared to before, which may reflect that the market style will undergo some changes: looking at the market style trends in the first and second quarters of this year, the market as a whole was value-oriented, at that time, the performance of the 300 Value Index, 500 Value Index, and 1000 Value Index all outperformed the 300 Growth Index, 500 Growth Index, and 1000 Growth Index, reflecting that the performance of value stocks completely overwhelmed growth stocks. However, in the third quarter, the market style has undergone some changes, the performance of the 500 Value Index has obviously lagged behind other style indices; the performance of the 300 Growth Index has improved, ranking in the middle and upper position among all style indices, overall, the strong performance of value stocks has shown some signs of weakening, while the performance of growth stocks has rebounded." Li Yiming, a senior analyst at Morningstar (China) Fund Research Center, pointed out to the 21st Century Economic Report reporter.
In addition, Yao Xusheng, a wealth manager at Paipai Network, said that there have been several changes in the market recently, for example, first, the economy is gradually recovering, market sentiment is improving, and risk appetite is increasing. Investors tend to allocate industries and companies with growth potential to pursue better returns. Second, institutional investors adjust their portfolios based on the macroeconomic environment and market trends, and funds flow from value stocks to growth stocks, reflecting the institutions' optimistic attitude towards future market performance. Third, the government's policy support for scientific and technological innovation and industrial upgrading has increased, which has driven the development of growth-oriented enterprises.
The scale of stock ETFs has exceeded 2.1 trillion yuan.
Behind the continuous increase in positions of broad-based ETFs and industry-themed ETFs, it is hard to ignore the power of institutional funds.Focusing solely on Central Huijin Investment Ltd., which is the most closely watched by the market, its holdings in ETFs have approached 600 billion yuan.
According to institutional statistics, as of the end of June 2024, Central Huijin Investment Ltd. held a total of 21 stock ETFs with a position of 583.866 billion yuan, nearly quadrupling from the end of last year. The increased holdings include ETFs tracking broad-based indices such as the CSI 300 and SSE 50, as well as ETFs tracking indices like the CSI 1000, STAR 50, and ChiNext. Among them, Central Huijin Investment Ltd. increased its holdings the most in the CSI 300 ETF, and by the end of the second quarter of this year, it held a total of four CSI 300 ETFs, with a combined shareholding exceeding 133 billion shares.
Regarding the substantial increase in ETF holdings by Central Huijin Investment Ltd., Wu Qing, Chairman of the China Securities Regulatory Commission, stated at a press conference held by the State Council Information Office on September 24 that this fully reflects the national investment institution's high recognition of the investment value of the A-share market and has played a very important role in stabilizing the market and boosting confidence.
With the support of institutional funds, the total scale of stock ETFs has now exceeded 2.1 trillion yuan.
According to WIND statistics, as of September 24, the total net asset value of stock ETFs was 2.13457 trillion yuan, an increase of about 47% from the 1.453789 trillion yuan at the end of last year.
Among them, since the second quarter of this year, the net asset value of stock ETFs has increased by about 344.5 billion yuan.
Looking at individual stock ETFs, the scale of various types of products is not balanced.
As of September 24, there were five stock ETFs in the entire market with a scale exceeding 100 billion yuan, including four CSI 300 ETFs and one SSE 50 ETF. The combined net asset value of these five ETFs was 927.377 billion yuan, accounting for as much as 43% of the total scale of stock ETFs.
Following the above five products are the Southern Zhongzheng 500 ETF, Huaxia STAR 50 ETF, Yifangda ChiNext ETF, Southern Zhongzheng 1000 ETF, and Yifangda Science and Technology Innovation Board 50 ETF, with scales ranging from 40 billion to 91.1 billion yuan.
In comparison, the scales of industry ETFs and thematic ETFs are generally smaller. However, some industry ETFs have received more additions within the year, such as in the medical ETF, semiconductor ETF, chip ETF, and securities ETF, each with one product exceeding 20 billion yuan in scale.Additionally, whether it is broad-based ETFs or industry-themed ETFs, there is often a divergence in scale among products tracking the same index. This reflects a certain degree of homogenization in stock ETF products.
Policy Benefits are Coming
It is worth noting that in the future, under the influence of multiple policy benefits, the domestic ETF market is expected to further expand.
On September 24, Wu Qing stated that in the next step, the China Securities Regulatory Commission (CSRC) will further optimize the registration of equity fund products, vigorously promote innovation in index products such as broad-based ETFs, and introduce more ETF fund products including those for small and medium-sized plates like the ChiNext and STAR Market in a timely manner. This will better serve investors and the national strategy, as well as the development of new quality productive forces.
At the same time, he mentioned that the CSRC will work with relevant parties to further support Central Huijin Investment Ltd. to increase its holdings and expand its investment scope. This will promote the entry of various medium and long-term funds, including Central Huijin Investment Ltd., into the market, provide a better environment for medium and long-term funds to enter the market, further enhance strategic reserve strength, and jointly promote the stable and healthy development of the capital market.
At the same time, measures introduced at the central bank level are also conducive to the development of the ETF market.
Yao Xusheng analyzed to reporters that first, the central bank's announcement to lower the reserve requirement ratio and policy interest rates will provide more liquidity to the market, which helps to reduce the overall market financing costs. Lower capital costs can increase the attractiveness of the ETF market. Second, by reducing the interest rates on existing housing loans, the financial burden on residents is reduced, indirectly enhancing consumption and investment capabilities, which will have a positive impact on related ETFs. Third, the central bank has created new monetary policy tools, including swaps for securities, funds, and insurance companies, and special re-lending for stock buybacks and increases. These tools can enhance the financial acquisition capabilities and stock increase capabilities of financial institutions, and improve the stability of the capital market. By optimizing the market environment and encouraging medium and long-term funds to enter the market, it will promote the healthy and stable development of the ETF market.
In addition, he said that the continuous introduction of favorable policies helps to enhance investors' confidence in the capital market and attract more funds into the ETF market.
In Li Yiming's view, the policy expectations of lowering reserve requirements and interest rates, supporting the real estate market, and the capital market will play a role in increasing market liquidity, reducing the debt pressure on residents, and releasing the vitality of residents' consumption. This will support the capital market from both the fundamental and liquidity aspects and will ultimately boost the performance of corresponding ETFs. For example, various broad-based ETFs and ETFs in细分 industries such as consumption and technology may benefit from this.
In addition, Zhang Junxiao, head of the total cycle group of Penghua Fund Research Department, believes that the expansion of funds such as the stabilization fund has a strengthening effect on the inflow of broad-based ETFs.
Leave A Reply