In October, the market exhibited a volatile trend, with the Shanghai Composite Index rising 1.85% cumulatively and briefly surpassing the 4,000-point mark, hitting a decade-high. Meanwhile, the ChiNext Index fell 1.56%, and the STAR 50 Index declined over 5% amid fluctuations.

Sector-wise, ETFs tracking securities and semiconductor sectors attracted significant inflows, while those linked to chemicals and tourism faced outflows.

**Nearly 100 Billion Yuan Enters ETFs in October** Despite mixed monthly performances across major indices, ETF inflows remained robust, with equity and cross-border ETFs collectively drawing net inflows of 99.68 billion yuan. Notably, ETFs tracking the CSI 300 and STAR 50 indices each saw over 3 billion yuan in net inflows.

Conversely, several China A-500 ETFs experienced outflows, with China A-500 ETF (Fuguo) shedding 5 billion yuan, A-500 ETF (Huatai-PineBridge) losing 3.11 billion yuan, and A-500 ETF (Southern) and A-500 ETF (Leading) both declining by over 2 billion yuan.

Analysts suggest that recent market fluctuations reflect a tug-of-war around the 4,000-point level for the Shanghai Composite Index. Short-term volatility is expected, with investors advised to monitor policy shifts, liquidity conditions, and external factors. While market styles may rebalance toward valuation and growth prospects, long-term optimism persists for Chinese assets, with potential recovery ahead.

**Three Sector-Specific ETFs See Over 4 Billion Yuan Inflows** In October, three thematic ETFs recorded inflows exceeding 4 billion yuan each: Securities ETF, Broker ETF, and STAR Semiconductor ETF, with net inflows of 6.45 billion yuan, 4.09 billion yuan, and 4.07 billion yuan, respectively.

Outflows were observed in Chemical ETF, Tourism ETF, and FinTech ETF, which lost 1.47 billion yuan, 1.29 billion yuan, and 811 million yuan, respectively.

Brokerage-related ETFs, in particular, saw sustained demand, with Securities ETF (512880) and Broker ETF (512000) hitting record-high holdings. Analysts attribute this to strong trading volumes, active margin financing, a rebound in Hong Kong IPOs, and resilient equity investments—factors expected to boost sector ROE.

**Hang Seng Tech ETFs Gain Traction** Among cross-border ETFs, three Hang Seng Tech-related products attracted over 3 billion yuan each in net inflows, including Hang Seng Tech Index ETF, Hang Seng Tech ETF, and Hang Seng Tech ETF (Tianhong), with inflows of 3.95 billion yuan, 3.22 billion yuan, and 3.07 billion yuan, respectively.

Analysts note that Hong Kong-listed internet stocks trade below their three-year valuation averages and lag global AI peers. Mid-term prospects appear favorable amid global monetary easing, AI advancements, and stabilizing domestic economic expectations.

**Six ETFs Set for Listing Next Week** ETF holdings provide transparent insights into market trends, unlike actively managed funds with delayed disclosures. Six ETFs tracking indices such as Hang Seng Stock Connect 50, ChiNext New Energy, and STAR Market are slated for listing next week.

Additionally, eight ETFs focusing on sectors like home appliances, agriculture, banking, and autos are scheduled for issuance.

Disclaimer: This content is for reference only and does not constitute investment advice. Investors assume all risks.