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China Fund News reporter Zhang Yanbei

The global financial market fluctuated violently, and cross-border ETFs suffered heavy losses!

Global financial markets plunge

On August 1, the three major U.S. stock indexes all closed sharply lower. The Dow Jones Industrial Average fell 1.21% to 40,347.97 points; the S&P 500 fell 1.37% to 5,446.68 points; and the Nasdaq fell 2.3% to 17,194.15 points.

The overnight plunge in US stocks had a global chain reaction. On the morning of August 2, the opening of the Asia-Pacific stock market was in turmoil, showing a trend of collapse across the board. The Japanese stock market fell particularly hard, with the Nikkei 225 index falling more than 5% during the session.

As of the morning close, the Nikkei 225 index fell 1,864.48 points, or 4.89%, to 36,261.85 points; the Topix index closed down 4.7% at 2,577.51 points. In early trading, electrical stocks led the decline, and all sectors fell; 2,081 of the 2,135 stocks fell.

As of press time, South Korea's KOSPI index fell 2.7%, Australia's S&P/ASX200 index and MSCI Asia Pacific Index fell 2%.

Hong Kong stocks opened lower and fell by more than 2% at one point, with bank stocks falling collectively.

In terms of A-shares, the three major indexes opened lower collectively and maintained a narrow range of fluctuations in the morning. As of press time, the main indexes had not turned positive.

Cross-border ETFs such as US stocks and Japanese stocks fell sharply

The sharp fluctuations in the external markets led to a collective decline in the secondary markets of cross-border ETFs listed on the Shanghai and Shenzhen Stock Exchanges.

As of press time, 14 cross-border ETFs fell by more than 4%. Among them, the Nasdaq 100 ETF fell by 4.4%, with a turnover of 170 million yuan.

Cross-border ETFs that invest in the Japanese and American markets, such as the Japan Topix Index ETF, the Nasdaq Technology ETF, the Dow Jones ETF, the Nasdaq 100 ETF, and the Nasdaq ETF Wells Fargo, all plunged more than 4%. In addition, the China-Korea Semiconductor ETF and the Asia-Pacific Select ETF also experienced significant declines.

The turnover rates of some cross-border ETFs have increased significantly. For example, the turnover rate of the Dow Jones ETF is close to 23%, and the turnover rates of the Nasdaq ETF Wells Fargo and the China-Korea Semiconductor ETF are all above 10%.

Although cross-border ETFs have continued to pull back in the past two weeks, some ETFs still have a high premium, and institutions remind investors to be wary of premium risks.

Editor: Xiaomo

Review: Xu Wen

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