The capital inflow into broad-based ETFs shifts the market main theme to "profit-driven"

On February 26, the Korea-China Semiconductor ETF (513310) rose 9.64%, leading the market in ETFs. Several power grid and communication-related ETFs also saw significant gains. The Haitong Short-term Bond ETF (511360) had trading volume exceeding 66 billion yuan, ranking first in the market. In terms of equity ETFs, multiple China Securities A500 ETFs had high trading volumes. Additionally, it is worth noting that on the previous trading day (February 25), funds began flowing back into some broad-based ETFs.

Korea-China Semiconductor ETF Leads the Market

On February 26, sectors such as power, semiconductors, and steel surged. Among ETFs, the Korea-China Semiconductor ETF increased by 9.64%, leading the overall market, with a premium rate of 21.10% and a turnover rate exceeding 125%.

The semiconductor equipment sector continued to rise. What are the driving factors? Lu Xin, fund manager at GF Fund’s Index Investment Department, believes that from the perspective of storage cycle mapping, overseas storage and semiconductor equipment leaders hit new highs during the Spring Festival holiday, with storage price increase cycles exceeding expectations. The global storage industry remains in a state of “supply shortage,” and its prosperity is expected to continue rising until after 2027. Regarding equipment, overseas equipment leaders benefit from sustained AI demand, with performance exceeding expectations. Domestic equipment companies, beyond industry beta, may have greater excess return potential.

Guolian An Fund stated that the “strong reversal” in the sci-tech chip design sector has occurred, with significant gains in the afternoon. In a generally volatile market environment, the sector demonstrated strong momentum, highlighting investor preference and sector prosperity. The core logic behind its strong rise is that Nvidia’s impressive earnings report confirms long-term resilience in AI computing demand, combined with accelerated domestic industry development and ongoing policy support, jointly driving a double increase in valuation and performance for the chip design sector.

On February 26, sectors such as film theaters, insurance, and real estate saw significant adjustments, while the Hong Kong stock healthcare sector underperformed, with several healthcare-themed Hong Kong ETFs falling more than 3%.

Some Broad-based ETFs Reclaim Investor Attention

On February 26, the Haitong Short-term Bond ETF (511360) had trading volume exceeding 66 billion yuan, topping the market. In equity ETFs, several China Securities A500 ETFs, including the A500 ETF (512050), Huatai-PineBridge A500 ETF (563360), and Southern A500 ETF (159352), led in trading volume.

On the previous trading day (February 25), funds started flowing back into broad-based ETFs such as CSI 500 ETF (510500), Southern A500 ETF, and CSI 300 ETF (510300) by Huatai-PineBridge. Gold ETFs like Bosera (159937) and Guotai (518800) also saw net inflows. Multiple Hang Seng Tech ETFs experienced significant net inflows.

In the first two trading days of this week, there was a substantial net inflow of funds into Hang Seng Tech and Hong Kong internet-themed ETFs. According to Hu’an Fund analysis, although the Hang Seng Tech Index remains volatile, the inflow of funds against the trend, the emerging valuation gap, and continuous industry iteration signals indicate that “the long-term logic of the sector has not reversed.” From a liquidity perspective, the market has already priced in uncertainties such as Federal Reserve rate cuts. Amid ongoing adjustments, Hong Kong stocks are once again favored by southbound funds. Valuation-wise, the Hang Seng Tech Index remains relatively low. Industry trends show that during the Spring Festival, large models continued to update and iterate, demonstrating that domestic AI technology remains on a rapid development track. Notably, profit expectations in the tech sector are experiencing marginal changes. For investors, maintaining resolve amid volatility and not being disturbed by short-term noise may be a more rational approach.

The “Dual Mainline” Pattern Begins to Emerge

Looking ahead, Xingzheng Global Fund’s investment advisor states that in the Year of the Horse, as the capital market system continues to improve, market focus on the quality of listed companies’ profits, cash flow, and dividend capacity will increase. Investment logic is expected to shift from valuation enhancement to performance improvement. For ordinary investors, short-term market volatility may be unavoidable. It is recommended to remain patient and consider phased or dollar-cost averaging strategies to seize medium- and long-term opportunities.

Huang Zhi, fund manager of CITIC Prudential China Securities 800 Nonferrous Metals Index Fund (LOF), states that by 2026, the core logic of the market will shift from valuation uplift to profit-driven growth. Recently, the “dual mainline” pattern of cycles and technology has begun to show signs of initial formation, with style pendulum starting to tilt toward performance realization. Whether benefiting from economic recovery and supply-side improvements or relying on technological iteration to maintain high prosperity, future performance differentiation will depend on fundamental validation. The styles of these sectors may become more balanced.

Sun Huicheng, fund manager of CITIC Prudential Cycle Select and CITIC Prudential New Choice Return funds, indicates that under the backdrop of economic recovery, the market will continue its oscillating upward trend, with large- and mid-cap blue-chip styles potentially outperforming.