BEIJING, July 1 (Xinhua) -- Exchange-traded funds (ETFs) have gained importance in being a stock market stabilizer so far this year as semiannual net subscriptions for stock ETFs exceeded 400 billion yuan despite market fluctuations, reported Xinhua-run Shanghai Securities News on Monday.
By the end of June, 421.061 billion yuan of funds flew into ETFs, according to the report, quoting data provided by Choice.
When volatility prevailed on stock market in the first two months of this year, ETFs still drew plenty of fund flows and after entering June, net influx into ETFs continued in spite of lingering market fluctuations, said Zhang Xia, analyst with China Merchants Securities.
In the following months, ETFs are expected to continue to be an important source of fund flows for the stock market especially when net subscriptions for broadly-based ETFs may expand to some extent and benefit the large caps and stocks with relatively high investment value.
Similar to ETFs, other institutional investors also held high stock positions. Last week, many active equity funds added their positions of stocks in electronics, telecommunication, home appliances, petroleum and petrochemical sectors.
Since the start of this year, economic recovery has gradually stabilized and together with the likely balance of supply and demand, certainties in corporate performance improvement are anticipated to enhance further in the second half of 2024, noted Wang Jianshen, fund manager with China Merchants Fund.
Under such circumstances, the overall valuation of A-share market boasts relatively large upward correction space as it has hit the historically low levels after three years of consolidation, according to Wang.
(Edited by Duan Jing with Xinhua Silk Road, duanjing@xinhua.org)
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