Stock ETF attracts 6.3 billion yuan in net inflows against the trend in a single day; broad-based and internet sectors favored

What is the deep connection between the internet sector’s capital attraction and the AI trend?

Broad-based and internet sectors became the main “capital attraction” on Thursday, while sectors like chemicals, non-ferrous metals, and power grid equipment faced profit-taking.

On March 19, the Shanghai Composite Index opened lower and continued to decline, closing down 1.39%, barely holding above the 4000-point mark. However, funds showed a significant “buy on dips” trend through stock ETFs.

According to data compiled by The Paper from Wind, on March 19, the total net inflow for 1359 tradable stock ETFs (including cross-border ETFs) in the entire market reached 6.315 billion yuan in a single day.

In terms of fund flow, broad-based ETFs representing core A-share assets became a “safe haven” on Thursday, with evident inflow of bottom-fishing funds. Among them, the China Science and Technology Innovation 50 ETF and Huatai-PB CSI 300 ETF saw net inflows of 1.461 billion yuan and 1.136 billion yuan respectively; the FTSE China A50 ETF and E Fund ChiNext ETF had single-day net inflows of 908 million yuan and 674 million yuan respectively; net inflows for the China CSI 300 ETF, E Fund CSI 300 ETF, and Harvest CSI 300 ETF exceeded 200 million yuan each.

In terms of industry-themed ETFs, the internet, semiconductor, and brokerage sectors became the main battleground for capital speculation rebounds. Among them, the E Fund China Concept Internet ETF saw a single-day net inflow of 903 million yuan; the Guolianan Semiconductor ETF and Guotai Junan Securities ETF had net inflows of 619 million yuan and 609 million yuan respectively on Thursday.

Additionally, during the market’s turbulent adjustment period, defensive dividend strategies attracted renewed interest from funds. The Harvest CSI 300 Dividend Low Volatility ETF, Invesco Great Wall Dividend Low Volatility 100 ETF, and JPMorgan Hong Kong Stock Low Volatility Dividend ETF had single-day net inflows of 397 million yuan, 276 million yuan, and 197 million yuan respectively.

Meanwhile, enthusiasm for bottom-fishing in Hong Kong’s Hang Seng Technology sector remains unabated. The E Fund Hang Seng Technology ETF, Huatai-PB Hang Seng Technology ETF, Tianhong Hang Seng Technology ETF, and China Hang Seng Technology Index ETF all had single-day net inflows exceeding 100 million yuan.

Regarding the currently highly regarded technology internet sector, Hu Chao, Assistant General Manager of the International Business Department at Tianhong Fund and fund manager, expressed a cautious view of neutrality in the short term and optimism in the long term. “In the long run, major internet companies will clearly embrace the big trend of AI and increase investments in the AI field. The development of mobile internet in China is very mature, with a high penetration rate of smartphones among 1.4 billion users, leading globally. Pushing AI applications domestically through Doubao and others is just a short-term computational power barrier, which will inevitably bring long-lasting technological changes in the long term.”

From the perspective of fund outflow, the China CSI 500 ETF saw the largest net outflow of 1.022 billion yuan on Thursday. Additionally, the Southern CSI 1000 ETF, E Fund CSI 500 ETF, Southern CSI 500 ETF, China CSI 1000 ETF, and Huatai-PB CSI 800 ETF had single-day net outflows exceeding 200 million yuan each.

Some sectors that previously saw significant increases or had high short-term congestion faced profit-taking, with industry-themed ETFs in chemicals, non-ferrous metals, power grid equipment, and communications experiencing considerable “blood loss.” Among them, the Penghua Chemicals ETF had a net outflow of 771 million yuan on Thursday; the Southern Non-Ferrous Metals ETF, China Power Grid Equipment ETF, China Non-Ferrous Metals ETF, and Wanjia Industrial Non-Ferrous ETF each had single-day net outflows exceeding 300 million yuan.

In this regard, Lan Xiaokang, Head of Value Team at China Europe Fund and fund manager, believes that the pricing in the non-ferrous sector has reached the stage of favorable investment, currently in a state of medium to high volatility and medium to high yields, or yields beginning to decline. The energy and chemicals sector had already risen by early 2026, but from a long-term perspective, it remains favorable, as valuations and various directions can outperform the market.

Lan Xiaokang further revealed his latest adjustment direction: “In the new direction, I will pay more attention to the logic of ‘anti-involution’ and certain sectors of consumption.” He also indicated that he has moderately reduced his position in the non-ferrous sector, “Of course, after price fluctuations, I will buy back some, but the position is still lower than the peak.”

Yu Guang, Assistant General Manager at Invesco Great Wall and head of the stock investment department, pointed out that the market remains focused on structural opportunities, especially emphasizing upstream resources (such as gold and copper) after corrections, as well as leading high-end manufacturing companies that possess cost advantages, technological leadership, and international expansion capabilities. This type of company, whether in emerging or traditional industries, will see their valuation systems restructured. He is optimistic about sectors benefiting from AI, resource products, and high-end manufacturing companies with international competitive advantages.