source: brokerage china

etf secondary market prices fluctuate significantly.

the a-share and hong kong stock markets are too hot, and the secondary market price of etfs has been affected by the rush for funds, causing a large deviation from the fund share reference net value (iopv).

as of september 30, the number of etfs with a premium of more than 2% reached 217, and the number of etfs with a discount of more than 2% reached 113. taken together, the number of stock etfs with slightly abnormal prices accounts for as much as 30%.

judging from the reasons behind it, in recent years, investors' awareness of etfs has gradually increased, and their unique charm as an investment tool has been gradually accepted by the market. in this round of market conditions, etfs have become one of the important channels for investors to quickly get on board. since september 24, in just 5 trading days, a-share and hong kong stock-related etfs have received a net inflow of more than 110 billion yuan. on september 30, funds accelerated their entry into the market and continued to increase their purchases of etfs. disclosed shanghai etf data shows that on september 30, a total of nearly 50 billion yuan of funds flowed into shanghai etfs.

thanks to better-than-expected policies, the a-share and hong kong stock markets collectively bottomed out and rebounded.

etfs investing in a-shares and hong kong stock markets have collectively surged. since september 24, a total of 65 etfs have increased by more than 40%, and the etf with the highest increase has increased by 58% within the range.

unlike previous theme etfs and industry etfs that have served as vanguards of rebounds, the etfs with the strongest rebound this time are broad-based etfs. in this round of rebound, the growth rate of gem-related broad-based etfs was the largest, and the rebound rate of related etfs generally ranged from 40% to 58%.

following closely are the theme (industry) etfs, such as science and technology innovation board chips, financial technology themes, wine, food and beverage and other theme (industry) etfs.

the rebound strength of the above-mentioned etfs is not inferior to that of some industry leaders. for example, the wine etf rose by 42% during the period, which was better than the 38.56% increase of kweichow moutai; the 52.28% increase of the ping an gem etf during the period was better than the 33.84% increase of catl.

etfs are traded on the market like ordinary stocks, and investors can buy and sell them in the secondary market of the exchange. however, their price fluctuations are not independent like stocks but closely follow the reference net value of fund shares. due to fund impacts, different fund settlement dates and other reasons, etf secondary market prices often deviate from the reference net value of fund shares, showing a premium or discount.

however, if there is a significant rush for funds in the stock market or etf market, etfs will often experience significant discounts and premiums. if the premium is large, the fund company also needs to issue a premium risk warning announcement.

in the first half of this year, the hot u.s. stock market triggered frequent premium risk warning announcements from a large number of qdii etfs. recently, the a-share and hong kong stock markets have been booming, and relevant etfs have successively issued premium risk warning announcements.

the boci gem etf (159821) announced after the market closed on september 27 that the transaction price in the secondary market showed a large premium, and the transaction price deviated significantly from the reference net value of the fund share. investors are hereby reminded to pay attention to the risk of price premium in secondary market transactions. investors may suffer heavy losses if they invest blindly. the chuang technology etf announced after the market closed on september 27 (159777), reminding investors to pay attention to the risk of price premium in secondary market transactions. investors may face greater losses if they buy at a high premium.

the premium of e fund's shanghai science and technology innovation board 100 enhanced (588500) secondary market closing price on september 27 to the reference net value of fund shares on that day even reached 19.68%. in order to protect the interests of investors, the fund opened on september 30 trading will be suspended for 1 hour from the start of the market. at the close of trading on september 30, the etf’s premium was still as high as 7.57%.

as of september 30, the number of etfs with a premium of more than 2% reached 217, the number of etfs with a discount of more than 2% reached 113, and the number of stock etfs with abnormal prices accounted for as much as 30%, showing a rush for funds in the etf market explosive phenomenon.

"buying an etf with a high premium will not only face normal price fluctuations, but also face the frictional cost of the disappearance of the premium. investors should remain rational." a fund observer told securities times·brokerage china reporter that etf premiums often appear in when the market is relatively excited, funds rush in in order to seize the opportunity, pushing up the secondary price of etfs and causing them to deviate from the reference net value of fund shares.

buying premium etfs faces premium risks, while the emergence of discount etfs is mostly caused by market liquidity. there is a large room for arbitrage when buying these etfs. for example, etfs that experienced significant discounts on september 30 are mainly divided into two categories. in most cases, the etf component stocks have increased significantly, exceeding the etf's price limit, thus resulting in discounts; the other category is the liquidity of a small number of etfs. poor performance and inactive trading result in the secondary market price being lower than the reference net value of fund shares.

however, in the long run, etfs are unlikely to experience significant discounts or premiums for a long time. judging from historical data, the proportion of etf discounts and premiums exceeding 1% is only about 1%.

recently, the a-share and hong kong stock markets have been active. in addition to rushing to raise active chips, funds are also accelerating entry by buying equity etfs. equity etfs have become one of the important channels for investors to quickly get on board.

since september 24, in just 5 trading days, a-share and hong kong stock-related etfs have received a net inflow of more than 110 billion yuan. among them, huatai-berry csi 300 etf has a net inflow of nearly 30 billion yuan, and china southern csi 1000 etf has a net inflow of nearly 30 billion yuan. , southern china securities 500 etf’s net inflows also exceeded 10 billion yuan.

it is worth noting that following the 15 billion yuan rush to raise etfs on september 27, funds accelerated their entry into the market on september 30 and continued to increase their purchases of etfs. disclosed shanghai etf data shows that on september 30, a total of nearly 50 billion yuan of funds flowed into shanghai etfs.

specifically, southern csi 1000 etf, huatai-berry csi 300 etf, southern csi 500 etf, chinaamc sse 50 etf, and e fund sse science and technology innovation board 50 etf received net inflows of 11.155 billion yuan, 9.579 billion yuan, 7.015 billion yuan, and 4.809 billion respectively. yuan and 3.566 billion yuan.

many etf shares received large amounts of funds for subscription that day. in addition to important broad-based etfs, some theme (industry) etfs are also subject to funding competition.

among the themed (industry) etfs that have received funds, the brokerage etf (512000) has the largest scale, with the latest scale of 25.9 billion yuan, and a net inflow of funds of 385 million yuan in a single day. the price on the market has once again reached the limit, and trading sentiment is high. feng chencheng, the fund manager of the brokerage etf (512000), pointed out that under the current favorable situation where both macro and micro liquidity have been rare in recent years, the brokerage sector is expected to regain its name as the "flagbearer" sector.

in addition, southern csi all-inclusive real estate etf, china merchants shanghai securities consumer 80 etf, penghua csi wine etf, huabao csi bank etf, etc. all received net inflows of over 300 million yuan. the southern china securities all-inclusive real estate etf received a net inflow of 1.195 billion yuan in a single day, with a share increase of up to 19%. under the combined effect of share and net value increases, the latest size of the etf is close to the highest in history.

market sentiment continues to be exciting, and the rapid rebound of this round of market conditions has surprised most investors. in this round of rebound, etfs have played an important role as a market booster.

compared with over-the-counter funds, etfs have significant advantages such as low handling fees, good liquidity, and high transparency. their high-position operation characteristics can ensure that they are more aggressive in market rebounds.

in recent years, active equity funds have performed poorly. with the improvement of market effectiveness, the value of etf allocation has increased, and investors' awareness of etfs has also increased. the unique charm of etfs as investment tools has been gradually accepted by the market.

for many investors who want to allocate assets and diversify risks, etfs can be described as an ideal allocation tool. etfs can also effectively track the performance of major indexes, making it easier for investors to grasp market trends.

in the past few years, the scale and product types of etf products have rapidly expanded, and many phenomenal broad-based etf products have emerged with a scale of over 100 billion yuan. in addition to core broad-based etfs such as the csi 300, some small and medium-cap broad-based index systems are also gradually improving, such as csi 1000, csi 2000, science and technology 100, etc., constantly enriching investor choices.

this year’s fund semi-annual report data further supports the appeal of etfs to investors. statistics from securities times·brokerage china reporters found that as of the end of june, more than 20 individual investors among the top ten holders of etfs held etfs with a market value of more than 100 million yuan, a significant increase from previous years. many individuals investors are placing heavy bets on etfs. one individual investor spent more than 500 million yuan to purchase the china securities exchange 50 etf and was newly added to the list of the top ten holders of the etf, reflecting the trend of individual investors turning their preference to etfs.

it is worth noting that the popularity of etfs is also accompanied by certain risks. when investing in etfs, investors should maintain a cautious attitude, allocate assets reasonably, and control risks.

editor: ye shuyun

proofreading: liu rongzhi

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