July 2026 A-Share Correction Fuels RMB 494 Billion Stock ETF Inflows, STAR 50 Leads

In July 2026, the A-share market experienced a deep correction, yet stock ETFs attracted massive inflows. Overall, broad-based and industry theme ETFs together drew over RMB 470 billion, with broad-based index ETFs becoming the primary recipients. ETFs tracking core indices such as the CSI 300 and CSI A500 saw significant additions, while funds linked to the STAR 50, CSI 1000, and ChiNext also recorded inflows. In the industry theme segment, semiconductor-related ETFs attracted net inflows despite steep losses, whereas Hong Kong tech ETFs posted net outflows during a rebound. Among other assets, money-market, commodity, and convertible bond ETFs saw increased allocations, while credit bond, government bond, and cross-border ETFs experienced net outflows.

Across the entire market, July ETF net inflows totaled RMB 494.012 billion, bringing total assets under management to approximately RMB 4.90 trillion by month-end. Broad-based index ETFs alone recorded net inflows of RMB 315.720 billion, accounting for nearly two-thirds of all ETF inflows, with month-end scale reaching RMB 1.14 trillion. Industry theme ETFs added RMB 157.657 billion, ending the month at RMB 1.36 trillion. Combined, equity ETFs from these two categories absorbed RMB 473.377 billion, representing the vast majority of July's ETF inflows. Among major broad-based indices, STAR 50-related ETFs led with net inflows of RMB 67.780 billion, followed by CSI A500, CSI 300, CSI 1000, and ChiNext ETFs, which netted RMB 45.867 billion, RMB 45.410 billion, RMB 45.181 billion, and RMB 43.231 billion, respectively.

By month-end scale, CSI 300-related ETFs topped the list at RMB 289.526 billion, while CSI A500, STAR 50, and ChiNext ETFs reached RMB 214.732 billion, RMB 165.459 billion, and RMB 99.912 billion, respectively.

Among industry theme ETFs, semiconductor-related funds were the main destination for July inflows. ETFs tracking the STAR Semiconductor Materials & Equipment Index posted net inflows of RMB 41.887 billion, the highest among industry theme indices. Those linked to the CSI Semiconductor Materials & Equipment Index and the STAR Chip Index attracted RMB 28.634 billion and RMB 12.091 billion, respectively. All three semiconductor indices declined sharply in July: the STAR Semiconductor Materials & Equipment Index fell 32.35%, the CSI Semiconductor Materials & Equipment Index dropped 31.76%, and the STAR Chip Index lost 31.71%. Additionally, ETFs tracking securities companies and robotics industries also saw inflows. The CSI All-Share Securities Companies Index ETF netted RMB 10.114 billion, ending the month with a market value of RMB 146.502 billion. The Guozheng Robotics Industry Index and CSI Robotics Index ETFs attracted RMB 9.016 billion and RMB 5.047 billion, respectively. The Gold Stock Index ETF netted RMB 3.867 billion, as the index gained 19.33% in July.

Inflows also went to 5G, innovative drugs, and power-related ETFs. The products that saw reductions were concentrated in Hong Kong tech ETFs. The Hong Kong Stock Connect Technology 30 ETF (ICBC) had net outflows of RMB 8.843 billion in the past month, the Hang Seng Tech ETF (Huatai-PineBridge) lost RMB 4.646 billion, the Hong Kong Tech ETF (Invesco) shed RMB 2.645 billion, and the Hong Kong Stock Connect Tech ETF (GF) and Hang Seng Tech ETF (China Asset Management) saw outflows of RMB 1.867 billion and RMB 1.783 billion, respectively. All these products posted net gains in July.

Among other ETF types, money-market ETFs netted RMB 22.626 billion in July, with month-end scale reaching RMB 195.326 billion. Commodity ETFs added RMB 5.273 billion, ending the month at RMB 261.057 billion. Strategy-style ETFs and convertible bond index ETFs netted RMB 4.459 billion and RMB 4.087 billion, respectively, with month-end scales of RMB 250.864 billion and RMB 76.017 billion. Bond ETF flows were mixed: credit bond index ETFs saw net outflows of RMB 2.635 billion but still held RMB 633.937 billion at month-end; government bond index ETFs lost RMB 2.998 billion, ending at RMB 186.475 billion with turnover of RMB 767.614 billion; convertible bond index ETFs netted RMB 4.087 billion. Cross-border ETFs suffered net outflows of RMB 10.177 billion, the largest among ETF categories in July, yet their month-end scale remained at RMB 803.487 billion, ranking third after industry theme and broad-based index ETFs.