On August 18th, the performance of China's three major A-share indices diverged, and amidst the fluctuating market conditions, some investors chose to exit their positions. During that session, the total net capital outflow from equity ETFs across the market, including cross-border ETFs, surpassed 13 billion yuan, while sector and theme ETFs focused on semiconductors and telecommunications attracted notable inflows. Over the preceding five trading days, ETFs tracking the semiconductor materials and equipment index saw inflows exceeding 2.4 billion yuan, and those tracking securities companies attracted over 1.6 billion yuan.
Net Outflow of 13 Billion Yuan, Semiconductor and Communication ETFs Attract Capital
According to Wind data as of August 18, 2026, the total scale of the 1,534 equity ETFs across the market stood at 3.58 trillion yuan, with some capital continuing to exit strategically. On August 18th, the total share of the equity ETF market decreased by 5.511 billion units, and based on the average transaction price, the net outflow for the day was calculated at 13.13 billion yuan. That day, 25 equity ETFs recorded net inflows exceeding 100 million yuan, with the top three being Guotai Communication ETF, ChinaAMC STAR Semiconductor ETF, and Guotai Semiconductor Equipment ETF.
On the same day, the total market net capital outflow was 8.72 billion yuan. By major category, bond ETFs and sector theme ETFs led the inflows, at 4.735 billion yuan and 1.026 billion yuan respectively, while broad-based ETFs saw the largest outflows, reaching 13.3 billion yuan. In terms of scale changes, the size of broad-based ETFs decreased by 16.558 billion yuan. Data from E Fund Management indicated that the top five sectors for inflows that day were semiconductors with a net inflow of 2.77 billion yuan, credit bonds with 2.15 billion yuan, communications with 1.37 billion yuan, science and technology innovation bonds with 1.04 billion yuan, and local government bonds with 570 million yuan.
At the index level on August 18th, the Shanghai corporate bond index for market-making saw the highest single-day net inflow of 1.466 billion yuan, while the CSI A500 index experienced the most significant single-day net outflow of 3.203 billion yuan. Observing from a five-day perspective, over 2.4 billion yuan flowed into the semiconductor materials and equipment index, with more than 1.6 billion yuan into securities companies. Since the beginning of August, equity ETFs have generally shown a net outflow trend, with a cumulative "loss" exceeding 150 billion yuan, primarily concentrated in broad-based ETFs.
Leading Fund Managers' ETFs Show Continued Capital Attraction
ETFs under some leading fund management companies continued their steady inflow pace. The latest total scale for E Fund ETFs is 633.53 billion yuan. Among them, the ChiNext ETF from E Fund has a scale of 64.05 billion yuan with a net inflow of 290 million yuan; the Semiconductor Equipment ETF from E Fund has a scale of 22.31 billion yuan with a net inflow of 160 million yuan; the STAR Chip Design ETF from E Fund has a scale of 860 million yuan with a net inflow of 150 million yuan; the STAR Growth ETF from E Fund has a scale of 1.82 billion yuan with a net inflow of 80 million yuan; and the Growth ETF from E Fund has a scale of 6.07 billion yuan with a net inflow of 80 million yuan.
On the ChinaAMC side, in the previous trading day, the STAR Semiconductor ETF and the Communication ETF led the daily net inflows with 561 million yuan and 251 million yuan respectively, reaching latest scales of 43.664 billion yuan and 18.963 billion yuan. Their corresponding tracking indices have seen average daily turnover of 8.623 billion yuan and 1.412 billion yuan over the past month. Additionally, the Credit Bond ETF and the STAR 50 ETF from ChinaAMC both saw net inflows exceeding 200 million yuan, while the STAR Bond ETF recorded net inflows of over 100 million yuan.
Market Outlook: Transition to Consolidation, Awaiting New Catalysts
E Fund believes that the market is beginning to shift from an initial oversold rebound to a phase of consolidation. Domestically, July financial data reflects weak financing demand from the real economy. Although domestic demand sectors have rebounded, this is largely driven by capital rebalancing, and the short-term sentiment recovery may face pressure. The turning point will depend on expectations for incremental policies and subsequent data. Overseas, weaker-than-expected US inflation and employment data have led to further downward revisions in expectations for Fed rate hikes this year, which could ease pressure on the denominator side for growth assets. Further market movements may come from sectors with industrial catalysts. Considering that the growth style still has clear industrial trend support, the market may appropriately tilt towards growth on the basis of balanced allocation.
Bank of China Fund suggests that the market repair may enter a period of sideways consolidation, with increasing resistance ahead. They judge that further recovery will require new capital or fundamental catalysts. First, from a capital perspective, they believe the market has not yet returned to an incremental capital environment. The recent profit-taking, represented by ETF capital, is ongoing. The issue of institutional positions being concentrated in AI-related sectors earlier may not be fully resolved, and subsequent rebounds may inevitably face continued pressure from trapped buyers and bottom-fishing floating profits. Second, from a fundamental perspective, there are two scenarios that could drive the market from a rebound to a reversal: one is new industrial progress in the AI sector that can unite market consensus, and the other is a significant improvement in domestic economic expectations. Currently, neither condition is present.