On the first trading day of September, the stock ETF market in China experienced a notable shift in capital flow after previously witnessing over 120 billion RMB in net inflows during AugustOn September 2nd, the market recorded a net outflow of approximately 2.37 billion RMB, indicating a significant adjustment in investor sentiment.

Despite the overall downturn in the market, certain funds within the sector continued to attract substantial investmentFor instance, the Sci-tech Innovation 50 ETF provided by Huaxia Fund observed an impressive net inflow of over 480 million RMBSimilarly, the ChiNext ETF from E Fund saw a net inflow surpassing 160 million RMB, placing both funds among the top five in terms of net inflows for that day.

The broader market on September 2nd was not particularly favorable, as all three major stock indices in A-shares saw declinesBy the end of trading, the Shanghai Composite Index fell by 1.1%, the Shenzhen Component Index decreased by 2.11%, and the ChiNext Index dropped by 2.75%. In terms of sector performance, the coal and banking sectors managed to post gains, while areas such as computers and food and beverage suffered heavier losses.

Data from Wind revealed that, as of September 2nd, the total asset management scale of the stock ETF market reached approximately 2.34 trillion RMB, with 915 ETFs listed, including cross-border ETFs

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The market witnessed an increase of 968 million fund shares, and based on average transaction prices, the estimated net outflow amounted to around 2.37 billion RMB.

A closer examination of the funds revealed that on September 2nd, eight products garnered over 100 million RMB in net inflowsLeading the pack was the Huaxia Fund's Sci-tech Innovation 50 ETF, which secured a net inflow of 485 million RMBFollowing closely were the Battery ETF from GF Fund and the Hong Kong Stock Connect Internet ETF from Fortune Fund, with net inflows of 196 million and 177 million RMB, respectively.

The Sci-tech Innovation 50 Index notably received the highest net capital inflow that day, totaling approximately 724 million RMB; over the past five days, the index has attracted more than 1.3 billion RMB in fundsVarious industry-themed products also recorded considerable net inflows, including a 173 million RMB inflow for the Securities ETF and a 152 million RMB inflow for the Semiconductor ETF.

On the same day, E Fund’s ETFs collectively garnered a net inflow of 108 million RMB, with both the ChiNext ETF and the Sci-tech Innovation 50 ETF achieving net inflows exceeding 100 million RMB

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Additionally, the Pharmaceutical ETF, IoT 50 ETF, and Securities Insurance ETF also attracted varying degrees of net inflows.

In terms of capital outflows, the China Securities 500 ETF faced the largest net outflow, exceeding 1 billion RMBAlong with this ETF, multiple China Securities 1000 ETFs and CS300 ETFs also experienced significant net outflows.

New entrants to the market showed promise as wellOn September 2nd, excluding feeder funds, the Xinhua China Securities Dividend Low Volatility ETF and Dongcai China Securities 500 ETF were newly established, with total subscriptions of 426 million shares and 212 million shares, respectively, and registered 2,460 and 1,599 individual subscribers, with the fund managers being Deng Yue and Wu Yi.

According to analysts from Galaxy Fund, as September unfolds, market sentiment is beginning to recoverThey indicated that this recovery might be influenced by the ongoing transitional phase following the conclusion of the A-shares semi-annual report season, ushering in what could be termed an "earnings vacuum." With the People's Bank of China’s interventions on the yield curve, it is anticipated that market conditions may gravitate towards a phase of equilibrium

• Strengthening the Health Consumer Market
• Japan to Significantly Raise Interest Rates
• New Trends in U.S. Inflation
• Growing Investment in Sci-Tech 50 ETF
• Insurance Capital Boosts Bank Stocks Again

The outlook suggests a possible shift in investment strategy from a focus on high dividend yields toward sectors characterized by high growth momentum and robust return on equity (ROE).

Meanwhile, Zhongyuan Securities highlighted the implications of recent signals from the Federal Reserve regarding potential interest rate cutsThey noted that while the feedback effects of sustained high rates have not yet fully emerged, factors such as a decline in certain investment indicators, falling inflation data, and weakening employment figures are collectively enhancing expectations of a possible economic recession in the U.SGiven these dynamics, market expectations for the Fed to lower interest rates this year continue to strengthenLooking ahead, stock indices are projected to largely maintain a fluctuating trend, making it essential to keep a close watch on policy adjustments, liquidity conditions, and shifting external factors