In early trade on Aug 20 several broad-based ETFs extended heavy turnover after
large late-session volume the prior day as investors used ETFs to accelerate
re-entry. On Aug 19 equity ETFs posted net inflows of over CNY 50.0 bln;
broad-based ETFs accounted for nearly CNY 40.0 bln of that. This morning the
Sci-Tech Innovation 50 ETF traded CNY 3.65 bln and the ChiNext ETF CNY 3.50 bln;
A500, CSI 1000, CSI A500 and CSI 300 ETFs each traded more than CNY 2.0 bln.
Market participants say the recent volatility is driven by external shocks and
portfolio adjustments rather than a trend change in sector fundamentals. Watch
turnover, fund flows and earnings realization for further signals.
