news

한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina

Securities Times reporter Liu Junling

Although cross-border ETFs have continued to pull back in the past two weeks, some ETFs still have a high premium, and institutions said that overseas markets still have the risk of a pullback.

According to statistics from Securities Times Databao, in the past two weeks, 128 cross-border ETFs fell an average of 5.91%, and nearly 70% of them had a cumulative decline of more than 5%. The Nasdaq Technology ETF had a cumulative decline of 10.5%, and the Hong Kong Stock Technology 30 ETF, Hong Kong Stock Internet ETF, Hang Seng China Enterprises ETF, etc. fell by more than 8%. Only the S&P Biotech ETF and the Nasdaq Biotech ETF achieved increases.

The Nasdaq Technology ETF surged nearly 60% in the first half of the year and was hotly pursued by investors. The latest fund share is 6.154 billion, an increase of 207.28% from the end of last year. According to the second quarter report, its major holdings include technology giants such as Nvidia, Apple, Microsoft, and Meta. Nvidia fell more than 12% in the past two weeks, while Apple, Microsoft, and Meta fell more than 5%.

Cross-border ETFs invest in overseas markets. U.S. stocks have recently experienced a collective correction. The Nasdaq index has fallen 6.92% since July 11, and the S&P 500 index has also seen its largest decline of more than 3%.

In addition, the Hang Seng Technology Index has also fluctuated downward in the past two weeks, with a cumulative decline of 8.95%. Oriental Selection, Tencent Holdings, Baidu Group-SW, Lenovo Group, etc. have all fallen by more than 10%. The Hong Kong Stock Technology 30 ETF and Hong Kong Stock Internet ETF have accumulated declines of 9.84% and 9.62% respectively.

It is worth noting that after the continuous correction, some cross-border ETFs still have a high premium rate. The Nasdaq Technology ETF, which has the largest decline, has the highest premium rate, reaching 12.08%. The newly established Saudi Arabia ETF, Nasdaq ETF, and S&P 500 ETF have premium rates of more than 5%.

Many cross-border ETFs have continuously issued premium risk warnings. Among them, the Nasdaq Technology ETF has issued 17 warning announcements since July and has been suspended frequently. The Nasdaq 100 ETF has also issued as many as 14 related announcements. The Saudi ETF and S&P 500 ETF have also recently issued risk warning announcements intensively.

Compared with the end of the first half of the year, the premium rate of the Nasdaq Technology ETF has narrowed from 19.73% to 12.08%, but it still has a high risk. The exchange has previously taken action to focus on monitoring the Nasdaq Technology ETF and strictly identify abnormal trading behaviors.

However, in the context of continuous correction and high premium, cross-border ETFs are still favored by funds. Statistics show that in the past two weeks, more than 90 cross-border ETFs have received net inflows of funds, with a total net inflow of about 9 billion yuan. The Hang Seng ETF, Nasdaq 100 ETF, and Hong Kong Stock Connect Internet ETF have the highest net inflows, at 901 million yuan, 847 million yuan, and 745 million yuan, respectively.

Many institutions have stated that after this round of correction, the valuation of U.S. stocks is still at a relatively high level, U.S. stock performance expectations have been lowered recently, and there is still a risk of decline in overseas markets in the future.

Hua Xi Securities Research Report believes that since this round of high interest rate cycle in the United States will last for a long time, it is likely to cause potential pressure on the U.S. economy and financial system, and the valuation of U.S. stocks is at a relatively high level. The Federal Reserve's interest rate cut cycle is often related to the weak U.S. economy and the pressure of a U.S. stock market correction. Coupled with the performance pressure during the earnings season and the reduction of holdings by important executives of some important large U.S. companies for arbitrage, it is expected that the U.S. stock market will still be prone to a correction in the coming period.