Since this year, there has been significant structural differentiation in the A-share market, and hot sectors have rotated rapidly. As a result, ETF capital flows have shown high frequency fluctuations. The data shows that since this year, the overall size of ETFs has “suppressed first and then increased”, and the characteristics of normalization of “large inflows and outflows” of capital are obvious. A number of interviewees said that large inflows and outflows of ETFs tend to be normalized, and their impact on the A-share market is bidirectional. It is not only a “stabilizer” in the midst of market shocks, but at the same time, phased fluctuations challenge ETF's ability to operate.

Since this year, there has been significant structural differentiation in the A-share market, and hot sectors have rotated rapidly. As a result, ETF capital flows have shown high frequency fluctuations. The data shows that since this year, the overall size of ETFs has “suppressed first and then increased”, and the characteristics of normalization of “large inflows and outflows” of capital are obvious. A number of interviewees said that large inflows and outflows of ETFs tend to be normalized, and their impact on the A-share market is bidirectional. It is not only a “stabilizer” in the midst of market shocks, but at the same time, phased fluctuations challenge ETF's ability to operate.