Amid significant overseas market volatility, the Shanghai Composite Index recently fell below 4100 points, hovering around 4050. At this critical juncture, stock ETFs, often viewed as contrarian indicators, have once again provided support to the market.

According to data from China Galaxy Securities Fund Research Center, stock ETFs (including cross-border ETFs) recorded a net inflow of 88.99 billion yuan on February 5. Among these, A-share stock ETFs attracted a net inflow of 34.95 billion yuan.

Despite a lower opening driven by declines in overseas tech stocks and precious metals, which led to a consolidating market with reduced trading volume, investment flows into stock ETFs demonstrated a "buy-the-dip" pattern, resulting in net subscriptions throughout the day. As of February 5, the total assets under management for the 1,322 stock ETFs (including cross-border ETFs) reached 3.9 trillion yuan. During the market's volatile decline, net inflows into the stock ETF market amounted to 88.99 billion yuan.

By category, Hong Kong market ETFs and sector-themed ETFs led net inflows, reaching 53.2 billion yuan and 19.47 billion yuan respectively. In contrast, bond ETFs experienced the largest net outflow at 1.87 billion yuan. In terms of size change, sector-themed ETFs saw a decline of 168.52 billion yuan.

At the index level, ETFs tracking the Hang Seng Tech Index recorded the highest single-day net inflow on February 5, totaling 29.72 billion yuan. Conversely, ETFs linked to the CSI 500 Index led net outflows, with 31.39 billion yuan exiting. Over the past five trading days, ETFs tracking the Hang Seng Tech Index attracted over 98 billion yuan, while those following the STAR 50 Index drew more than 38 billion yuan.

Among major fund companies, China Asset Management, Huatai-PineBridge, and E Fund Management saw net inflows of 31.8 billion yuan, 28.5 billion yuan, and 28.2 billion yuan respectively. Southern Asset Management and Harvest Fund experienced net outflows of 28.5 billion yuan and 3.8 billion yuan.

E Fund Management's ETF assets under management recently reached 651.95 billion yuan. Key inflows included 9.2 billion yuan into its China Overseas Internet ETF, 3.6 billion yuan into its Hang Seng Tech Index ETF, 3.1 billion yuan into its Hong Kong Stock Connect Internet ETF, 3.1 billion yuan into its CSI 300 ETF, 2.3 billion yuan into its STAR 50 ETF, and 1.0 billion yuan into its ChiNext ETF.

At China Asset Management, the A500 ETF and Hang Seng Tech Index ETF led daily net inflows, attracting 11.99 billion yuan and 6.5 billion yuan respectively. Their latest sizes stood at 41.486 billion yuan and 51.994 billion yuan, with corresponding index average daily turnover over the past month reaching 12.239 billion yuan and 5.149 billion yuan. The STAR 50 ETF, SSE 50 ETF, and Grid Equipment ETF each saw inflows exceeding 4 billion yuan, while the Free Cash Flow ETF attracted 3.55 billion yuan.

Broad-based A-share ETFs and Hong Kong market ETFs emerged as the main magnets for capital. Wind data shows that on February 5, four non-monetary ETFs—ChinaAMC A500 ETF, Huatai-PineBridge CSI 300 ETF, Bosera 30-year Government Bond ETF, and Huatai-PineBridge Hang Seng Tech ETF—each recorded net inflows of over 10 billion yuan, spanning A-share broad ETFs, bond ETFs, and Hong Kong ETFs.

Additionally, E Fund's China Overseas Internet ETF attracted more than 9 billion yuan in net inflows. Among Hong Kong ETFs, ChinaAMC's Hang Seng Tech Index ETF and GF Fund's Hong Kong Innovative Pharma ETF each saw net inflows exceeding 6 billion yuan. Guotai's Gold ETF, ChinaAMC's STAR 50 ETF, and Southern's Battery ETF also registered inflows above 4 billion yuan.

On the outflow side, Southern's CSI 500 ETF led with net outflows surpassing 30 billion yuan, followed by Harvest's Sci-Tech Innovation Bond ETF with outflows over 9 billion yuan. Guotai's Communication ETF, Yongying's Gold Stock ETF, Guotai's Sci-Tech Innovation Bond ETF, and Southern's Sci-Tech Innovation Bond ETF each experienced outflows exceeding 5 billion yuan.

Looking ahead, China Asset Management believes the market may continue to fluctuate in the short term. Downside risks are being rapidly priced in, with early-year gains in cyclical sectors like non-ferrous metals largely erased. While a bottom may not be immediate, the likelihood of further sharp declines heightening panic remains low.

In the technology sector, profit-taking pressure has eased after recent adjustments. The recent drop is mainly due to weakened risk appetite, while underlying fundamentals remain robust, limiting further downside. Additionally, low-position consumer sectors may see repeated opportunities amid expectations around Spring Festival and the National Two Sessions. Overall, major sectors lack the drivers for sustained market weakness, suggesting a strategy of buying on dips with a focus on popular tech themes.