File photo shows the exterior view of Shanghai Stock Exchange at Pudong New Area in Shanghai, east China. (Xinhua)
BEIJING, June 9 (Xinhua) -- China exchange-traded funds (ETFs) have drawn 137.95 billion yuan of net capital inflows despite the overall size shrinkage by Wednesday this year, making them a crucial vehicle for investors to hunt bargains amid the volatile stock market, reported Xinhua-run China Securities Journal on Thursday.
The newspaper citing data with Wind, a financial market data provider in China, said that 664 ETFs altogether valued 1.06 trillion yuan by Wednesday, down slightly from the 1.13 trillion yuan by the end of 2021.
But ETFs which recorded more than one billion yuan of net capital inflows numbered 42, with one tracking stocks listed on China's sci-tech innovation board or the STAR market and one tracking overseas listed Internet stocks hailing as high as 12.685 billion yuan and 10.817 billion yuan of net capital inflows respectively.
Among the 42 ETFs most favored by investors, a majority of them tracked stocks of companies engaged in mainstream industries such as the Internet, sci-tech, PV, bio-pharmacy, animal husbandry, and Baijiu.
Thanks to the brisk capital inflows, shares of ETFs surged this year. By Wednesday, there were 40 ETFs whose shares grew by more than one billion this year.
Industry experts attributed the influx of capital through the ETFs to their optimism in the ongoing bottom building on China's stock market.
In the third quarter, China's economic recovery is expected to gradually strengthen, which will inject new vitality into the A-share market and A-shares now have relatively high value for long-term investment, said Wang Jing, chief strategist with TruValue Asset Management Co., Ltd.
Currently, investors have started to focus on influences of economic growth stabilizing expectations and the certainty of business performances of listed companies will remain the core of attentions in future.
Generally, both internal and external market environments have presented marginal improvement and are good for market expectations to further warm up, according to analysts with Lion Fund Management Co., Ltd.
In China, a series of economic indicators have pointed to continued economic recovery in June. Outside China, expectations for the direction of the U.S. Federal Reserve's monetary policies have been clear and together with the fading uncertainty in geopolitical situations, the worst period for global commodity market has passed, Lion Fund analysts noted.
Under such circumstances, Xiang Weida, chief economist with Great Wall Fund, suggested bottom fishing in stocks of companies with solid business fundamental, promising long-term growth prospect, low valuation and high dividend yield for investors.
For instance, investors are advised to pay attention to sectors highly relative to stabilizing the economic growth such as the infrastructure and real estate industrial chains, with building materials, coal, iron and steel, and banking all included.
Over the long run, sci-tech, military industry, new materials, and new energy industrial chains are all worthy of close attention, Xiang added. (Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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