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High-priced assets are experiencing a pullback, and funds are emerging to buy at the bottom.

Author | Market Capitalization Fund Research Department

Editor | Xiaobai

Hello everyone, this is the ETF column updated weekly by the Market Capitalization Fund Research Department. It will release the latest market data of ETF funds and the valuation data of the corresponding index every weekend. Today is the 24th issue.

The weekly reviews are divided into three major lists.

The index valuation ladder mainly publishes the ROE, PE and PB values ​​of the index. The current position is undervalued or overvalued compared with history, and provides the index's current historical percentile data.

The ETF Rising "Heroes" list mainly publishes the top 20 ETFs with a scale of more than 500 million yuan that week.

The share increase list mainly looks at the top 20 ETFs with a scale of over 500 million yuan that week with the largest increase in share.

Index Valuation “Ladder” Ranking

The market trend was divided this week. Among the important indexes, small and medium-sized stocks such as CSI 1000 and CSI 2000 continued to fall, and the Beijing Stock Exchange 50 Index, which had been adjusted for a long time, rebounded from oversold. The rise of semiconductors also led to the outbreak of the Science and Technology Innovation 50 Index.

Below 3,000 points, the market is still in a narrow range of fluctuations, but the sentiment has improved compared with the previous period. After seven consecutive negative weekly lines, the Shanghai Composite Index has now been in the green for two consecutive weeks.

(Source: Choice data)

In terms of volume, the trading volume continued to increase this Sunday, but the average daily trading volume of the two markets was only 652 billion, which was smaller than that of last week, indicating that there is still a lot of wait-and-see funds on the sidelines.

(Chart: Market Capitalization APP)

This week is an important conference week, during which foreign capital sold off sharply. Northbound funds had four trading days of net selling this week, with a total net outflow of 19.3 billion. In order to prevent drastic market fluctuations, the national team has repeatedly stepped in to stabilize the market and injected a lot of liquidity into the market by buying ETFs.

(Source: Wind)

There was little change in the valuation list of important industry indices this week, among which the valuation levels of the Hong Kong Stock Connect Internet, nonferrous metals and other indices all declined from moderate to low.

Heavyweight stocks such as Tencent and Kuaishou fell more than 8% this week, causing the Hong Kong Stock Connect Internet Index to fall by -5.7% this week, further leading to a downward trend in the index valuation. Currently, the Hong Kong Stock Connect Internet Index has retreated more than 15% since May 20.

The decline in non-ferrous metal valuations this week was mainly due to the sharp adjustment in industrial metals - the non-ferrous metals sector fell -2.7% this week, but industrial metals fell 5%.

According to public data, LME copper futures fell by more than 5.7% this week, the largest weekly drop since 2022. Many other important metals also fell by more than 5% this week. The main reason for this wave of adjustments is the market's concerns about the demand side.

After this correction, the majority of the "too low" and "relatively low" valuations in the current valuation list of important industry indexes have further expanded, which means that there is no shortage of undervalued opportunities in the market.

Please note that the valuation traffic lights are based on any valuation percentile of the index PE or PB. Some friends may think it is unreasonable, but this is reasonable. So I will give you all the valuation percentiles and you can judge for yourself.

(Note: Red means overvaluation, yellow means moderate valuation, and green means undervaluation. The darker the color, the lower the historical percentile)

ETF Rising “Heroes” List

Excluding funds with a scale below 500 million yuan, the top 20 ETF funds with the highest growth this week are:

(Source: Choice data, market capitalization chart)

The Saudi ETF and the "Kote Guarantee" concept ETF were the main market gainers this week, especially the two Saudi ETFs, which performed particularly well, with weekly gains of more than 11%.

This Tuesday, the Saudi ETFs under Huatai-PineBridge and China Southern Fund were listed on the Shanghai Stock Exchange and Shenzhen Stock Exchange respectively. The two Saudi ETFs are among the first domestic funds that can invest in the Saudi Arabian market. They mainly track the FTSE Saudi Arabia Index in the form of ETF cross-listing.

(Source: Market Capitalization APP)

The two Saudi ETFs recorded consecutive daily limit increases in the first two days after listing, and the premium rate was directly driven up to 15%. However, the market speculation atmosphere subsequently weakened, and the premium rates of the latest two Saudi ETFs returned to around 6%.

(Source: Choice data)

Currently, the QDII products with the highest premium rates in the market are mainly those that track overseas indices. The one with the highest premium rate is the Nasdaq Technology ETF (159509.SZ), which tracks the Nasdaq Technology Market Capitalization Weighted Index, with a premium rate of 14%. The premium rates of other products are all below 10%.

(Source: Choice data)

As for the reasons for the high premium, Fengyunjun has mentioned it before: one is that the purchase quota of cross-border ETFs is limited, and the other is that these cross-border products have performed well in recent years, pushing up investors' purchasing enthusiasm.

(Source: Market Capitalization APP)

In addition, semiconductor chip concept stocks rose unusually this week, and the list of gains was entirely filled with chip and semiconductor ETFs.

In the news this week, the United States pressured Japan and the Netherlands to restrict chip trade with China, accelerating market expectations for domestic substitution.

In addition, according to the mid-year results, many integrated circuit companies have achieved substantial growth. TSMC's second-quarter results also exceeded expectations, with sales increasing by 40% year-on-year, and the lower limit of its full-year capital expenditure guidance was raised.

Catalysed by successive news, related ETFs have seen a strong counterattack.

In addition, the Digital Economy ETF (560800.SH) that tracks the digital economy also appeared on the list. Although the name seems to have nothing to do with semiconductors, there are many semiconductor-related stocks among the top ten holdings.

(Source: Choice data)

ETF share growth list

This week, excluding funds with a size of less than 500 million yuan, the top 20 ETF funds with the largest share growth are:

(Source: Choice data, market capitalization chart)

Among them, the Saudi ETF (520830.SH) had the largest share growth, with a weekly share increase of nearly 51%, followed by the Nasdaq ETF Wells Fargo (513870.SH), which experienced a volatile pullback this week.

The Nasdaq 100 Index fell back from its highs this week, with a weekly decline of nearly 4%, but some funds believed that the Nasdaq's pullback was an opportunity, so they made a big "bottom-fishing" move. There are also dividend-related ETFs in a similar situation.

(Source: Choice data)

This week, the market experienced a "high-low cut" trend. In the absence of incremental funds, market funds switched from dividend assets with good previous growth to technology growth areas.

However, even though the dividend sector continues to pull back, related ETFs are still sought after by funds. Among them, three of the four dividend ETFs with the largest increases focus on Hong Kong stocks.

Among broad-based products, those tracking the CSI 1000, CSI 300 and other indexes were bought crazily by funds, with the national team frequently appearing behind them.

Among the top ten ETFs with the largest net inflows this week, the top three are the CSI 300 ETF. With the support of the national team, these funds have significantly increased their trading volume and have achieved seven consecutive daily gains.

(Source: Market Capitalization APP)

In addition, there were also large inflows of funds into related ETFs such as CSI 1000, CSI 500 and SSE 50, especially CSI 1000 related ETFs, with many products showing large inflows of funds.

(Source: Choice data)

If you have any ETF data or new columns you want to know about, please feel free to communicate with Fengyunjun in the comment section.

Disclaimer:This report (article) is an independent third-party research based on the public company attributes of listed companies and the information disclosed by listed companies in accordance with their legal obligations (including but not limited to interim announcements, regular reports and official interactive platforms, etc.). Market Capitalization strives to be objective and fair in the content and views contained in the report (article), but does not guarantee its accuracy, completeness, timeliness, etc. The information or opinions expressed in this report (article) do not constitute any investment advice, and Market Capitalization shall not bear any responsibility for any actions taken as a result of using this report.

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