Reporter Fang Li and Lu Huijing of China** The ETF market is constantly witnessing history. According to the latest data disclosed by the Shenzhen Stock Exchange, as of February 22, the latest scale of Harvest CSI 300 ETF reached 10013.5 billion yuan, becoming the fourth ETF in the domestic ETF market with a scale of more than 100 billion yuan, and the first 100 billion-level ETF. Harvest CSI 300 ETF was established in mid-2012 and is one of the first cross-market ETFs in China. Since Huijin announced its increase in ETF holdings in late October last year, many funds have poured into the ETF market, and the scale of many broad-based ETFs has increased geometrically, and Harvest CSI 300 ETF, as an important broad-based ETF in the whole market, has increased by 587 since the beginning of this year9.4 billion yuan, an increase of more than 142%. On the same day (February 22), the total size of ETFs in the whole market and the total size of **ETF reached 238 trillion yuan, 176 trillion yuan, both hit a record high, which is also a new milestone in the ETF market, and the era of passive investment is accelerating. Another 100 billion ETF was bornThe scale of Harvest CSI 300 ETF exceeds 100.1 billion yuanIn just 5 trading days, the **ETF market ushered in the fourth 100 billion ETF.
On the morning of February 23, the latest data disclosed by the Shenzhen Stock Exchange showed that the total size of Harvest CSI 300 ETF reached 10013.5 billion yuan, breaking through the 100 billion mark, thus becoming the fourth **ETF with a scale of 100 billion yuan after Huatai Barry CSI 300 ETF, ChinaAMC SSE 50 ETF and E Fund CSI 300 ETF, and the first 100 billion-level **ETF on the Shenzhen Stock Exchange. 
Harvest CSI 300 ETF was established on May 7, 2012 and officially listed on May 28 of the same year, which is the first batch of cross-market ETFs in China. In the first year of listing, that is, in December 2012, driven by the inflow of foreign capital and economic improvement, there was a round of *** period in the A** field, and low-valuation cyclical industries such as banks, real estate, automobiles, home appliances, cement, etc. acted as the first pioneer, driving the CSI 300 index to rise by 17 in a single month91%, with the double growth of share and net value, the scale of Harvest CSI 300 ETF hit the 40 billion yuan mark at the end of the year. In 2015, the bull market came, and the scale of Harvest CSI 300 ETF once exceeded 48.5 billion yuan. However, as the **ETF market has entered a long period of consolidation, the scale of Harvest CSI 300 ETF has also fallen into volatility. In late October last year, Huijin announced that it would increase its holdings in ETFs, and funds from all walks of life in the market accelerated the influx of funds into the **ETF market, and the scale of Harvest CSI 300 ETF entered a new round of outbreak, and on January 18 this year, the ETF scale rushed to 5242 billion yuan, after 9 years, the scale broke through the high point in 2015 and hit a new high in the total scale. After that, it successively crossed the 60 billion yuan, 70 billion yuan, 80 billion yuan, 90 billion yuan and other integer barriers. Since January 31, it has refreshed a record high for 11 consecutive trading days, and finally exceeded the 100 billion yuan mark on February 22. Wind data shows that as of February 22, the scale of Harvest CSI 300 ETF has increased by 587 this year9.4 billion yuan, an increase of 14222%, and the scale has increased by 783 in the past year2.7 billion yuan, an increase of more than 35 times. **Type ETFsIn 2024, the net inflow will exceed 300 billion yuanThe birth of another 100-billion-level **-type ETF can be said to be the epitome of the scale of **-type ETF in 2024.
Wind data shows that ** ETFs continue to deduce net inflows. As of February 22, the current size of 734 ** ETFs has reached 17,608 trillion yuan, compared to 14,547 trillion yuan, an increase of more than 300 billion yuan, reaching 306 billion yuan. Specifically, since 2024, 8 broad-based ETFs have achieved an increase of 10 billion yuan, of which 4 CSI 300 ETFs have increased by more than 50 billion yuan. The SSE 50 ETF, CSI 500 ETF, ChiNext ETF and CSI 1000 ETF have also achieved a scale growth of more than 10 billion yuan. The rapid growth of the scale has also made the number of 100 billion yuan ETFs climb to four. Talking about the substantial growth of the scale of ** ETFs, an industry insider said that first of all, under the comprehensive effect of policy and fundamentals, with the judgment of long-term investors on the bottom of the A** market, the large funds represented by ** Huijin Company have opened the "sweeping" mode, which has greatly boosted market confidence, released a signal that the market is steadily recovering, and also provided more liquidity for the current market. In addition, the medium and long-term investment concept of large funds also has a positive guiding effect on investors. "At the same time, multiple positive factors such as buybacks of listed companies are accumulating, and incremental funds are still continuing to enter the market. In addition, in the context of the gradual improvement of the efficiency of the capital market, alpha income is becoming more and more difficult to obtain, the value of passive product allocation is relatively increasing, and investors' favor for ETF products is also increasing. The above-mentioned person said. Huang Wei, a senior analyst at Morningstar (China)** Research Center, believes that on the one hand, the overall poor performance of active equity** in recent years has prompted investors to turn to passive indexes with low fees, diversified positions and stable styles**, especially ETF products with both trading and allocation functions. On the other hand, with the decline of the market in the early stage, the valuation of A-shares has fallen to a historical low, and the value of long-term allocation has been highlighted. Not only that, many industry insiders believe that in 2024, the scale of ** ETF will grow significantly, and the national team fund is an important force to increase holdings. The above-mentioned industry insiders said that the policy continues to increase, investment sentiment boosted and other factors are superimposed, including social security, insurance companies, enterprise annuities, personal pensions, foreign capital, etc., all kinds of medium and long-term funds are expected to become incremental funds to promote the growth of the scale of ETFs. ETFs in the form of a basket of ** for these investors to create a significantly lower unsystematic risk than a single **, risk-return characteristics of more optimized tradable assets, among which broad-based ETFs usually have higher capacity, can cover more with high efficiency and low cost, and can carry the long-term layout needs of large amounts of funds. "ETFs have the characteristics of low fees, risk diversification, and flexible trading, which can help investors quickly capture investment opportunities, and are suitable for the advance layout and allocation of equity assets, so not only institutional investors prefer ETFs, but also with the deepening of investor education, individual investors' investment demand for ETFs is also becoming stronger. Yao Xusheng, partner of Paipaiwang Wealth Management, also said.
The global ETF wave is surgingThere is huge room for development in ChinaETF growth is unstoppable, and the world is making this wave. According to the "Shanghai ** Exchange ETF Industry Development Report (2024)" released by the Shanghai Stock Exchange a few days ago, the number of ETFs listed on domestic exchanges in 2023 will reach 889, with a total scale of 205 trillion yuan, a record high. In particular, the market value of equity ETFs reached 173 trillion yuan, accounting for about 2% of the total market value of A-shares. The net inflow of funds in the domestic ETF market in 2023 will exceed 500 billion yuan, giving full play to the role of stabilizing the market. ETFs in overseas markets are also "hot". According to the data, by the end of 2023, the total size of ETF assets listed and traded in the world exceeded $11 trillion for the first time, reaching 11$61 trillion, another record high. For the full year of 2023, the net inflow of funds is close to one trillion US dollars. For the first time, the passive scale of the United States surpassed the active scale, and indexed investment crossed a new milestone. Under this general trend, many industry insiders believe that there is still huge room for development of domestic ETFs, especially first-class ETF products. The above-mentioned industry insiders said that **ETF is still in a period of development opportunities, the current ETF penetration rate is still relatively low, and long-term funds have just begun to enter the market, and there is still a lot of room for development in the future. "On the one hand, it is expected that the domestic index system will be further improved, the overall index supply will increase, the R&D and innovation of ETF products will be enhanced, and the on-exchange medium and low volatility products and actively managed ETFs may be expected to be launched; On the other hand, the regulator will also 'develop and expand professional investment forces, promote more medium and long-term funds to enter the market', continuously improve the ETF market mechanism, continue to optimize the ETF investment ecological environment, promote the continuous opening of the capital market, and create a broader development space for indexed investment." The above-mentioned person said. Huang Wei also said that from the perspective of the development of overseas ETFs, the development prospects of domestic ** ETFs are very broad. With the improvement of market efficiency, it is increasingly difficult to actively obtain excess returns, and the advantages of ETFs may become more prominent in the future, which is expected to be favored by more investors. In addition, the number and variety of ETFs are becoming more and more abundant, and product innovations are emerging one after another, which can also meet the diversified investment needs of investors. "With the continuous development of China's ETF market scale and the gradual improvement of market efficiency, combined with policy measures such as fee reform, the scale of the domestic index may still have a lot of room for growth in the future. Yao Xusheng also said that the development prospects of ETFs will bring more opportunities for ** companies to seize the market. It has become the choice of many leading companies to achieve scale growth and increase market share by deeply cultivating the ETF segment.
Edit: Captain's Review: Muyu.