After China’s National Day holiday, the ETF market has set multiple historical records in just one week. A report from Zhongtong News highlighted that following the holiday, the market witnessed a remarkable surge, with daily net inflows exceeding 100 billion yuan (approximately $14.1 billion), the launch of the first ETF surpassing 400 billion yuan (around $56.4 billion), and the total ETF market scale reaching a new high of 3.83 trillion yuan (about $540.7 billion).
According to 21st Century Economic Report, the first trading day after the holiday on October 8 saw a surge in investor enthusiasm. The top 20 ETFs on that day recorded a combined trading volume of over 350 billion yuan (approximately $49.4 billion), surpassing the total trading volume of the top 20 individual stocks. Notably, the largest stock ETF in China, the Huatai-PB CSI 300 ETF, achieved a record scale of 430.2 billion yuan (around $60.7 billion).
In the context of market volatility, ETFs have emerged as a key contributor to the influx of funds. Bloomberg reported that between October 7 and 11, six out of the top ten global ETF inflows were attributed to Chinese assets. Despite only four trading days being available the previous week, Chinese assets demonstrated strong attracting power. Notably, the EFund ChiNext ETF had a net inflow of $4.962 billion for the week, ranking first in the world, and has now entered the ranks of ETFs worth over 100 billion yuan, reflecting a 149% increase this year. The Huatai-PB CSI 300 ETF also saw a substantial net inflow of $2.462 billion, ranking third.
Industry insiders note that the relative value proposition of ETFs, particularly for less experienced novice investors, is a significant draw. Existing clients are also showing a willingness to increase their holdings. With the rise in investment education, client awareness of ETFs has improved, prompting brokerages to adopt ETFs as a strategic focus.
Shanghai Securities Journal reported that a fund researcher in Shanghai mentioned the recent strong market rebound has prompted many investors to rush into the market. As investor risk appetite quickly rises, growth-style assets with more potential are becoming increasingly favored. As awareness of ETFs deepens, these investors are eagerly entering the market through relevant ETFs.