The A-share market recently experienced significant fluctuations, highlighting a growing divergence among various sectorsInvestors began to funnel their resources back into the dividend stock sector, as evidenced by the surging prices of the four major state-owned banks, which reached new heights during tradingIn contrast, some stocks witnessed notable decreasesAmidst this turbulent market environment, retail and institutional funds exhibited a strategic 'buy the dip' attitude towards stock ETFs, with net inflows nearing 3 billion Yuan on a single dayThe CSI A500 and CSI 1000 indices emerged as the primary beneficiaries of this influx.

On December 23, the overall market saw the total scale of 967 ETFs, including cross-border ETFs, reach an impressive 3.32 trillion YuanAmidst the fluctuating stock market conditions, the total shares of ETFs increased by approximately 3.68 billion

Calculating based on the average transaction price during this period, this amounted to a net inflow of approximately 2.9 billion Yuan on that day aloneIt is noteworthy that Hong Kong stocks and cross-border ETFs received considerable attention, registering net inflows of 816 million Yuan and 702 million Yuan, respectively.

Breaking down the specifics by index, the CSI A500 index and the CSI 1000 index saw significant net inflows, amounting to 1.7 billion Yuan and 908 million Yuan, respectively, on December 23. Over a five-day period, the CSI A500 index accumulated a remarkable net inflow of over 7 billion Yuan, showcasing strong investor confidence in this segment.

Specifically, the Southern Fund's CSI 1000 ETF led the charge, garnering a substantial net buy of 900 million YuanSimilarly, the CSI A500 ETF from Southern, Huaxia, and Tianhong all attracted net inflows exceeding 300 million Yuan on that day

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In terms of industry-specific or thematic ETFs, multiple products such as the healthcare ETF and others received strong net buying, surpassing the 200 million Yuan mark, placing them among the top performers in the market.

Assessing A-shares’ recent performance, Bosera Fund's macro analysis suggests that the medium to long-term outlook remains optimisticUnderpinned by proactive economic policies, the fiscal expansion is expected to unfold gradually and provide a sturdy foundation for market stabilityKey areas of interest are growth segments with anticipated industrial catalysts and cyclical sectors benefiting from policy supportFurthermore, as long-term interest rates experience a pronounced decline, dividend-paying assets are projected to attract institutional investment.

On the other hand, Guotai Fund underscored the current market's broad fluctuations and the importance of maintaining a strategic yet active approach to capitalize on structural opportunities

In the short term, the market seems to be in a transitional phase, characterized by a vacuum in policy and performance indicatorsThere is an apparent bias towards smaller stocks, leading to a possible shift back towards larger-cap assets.

Despite the prevailing market corrections, leading fund companies continue to see notable net inflows into their ETFsFor instance, on December 23, the Yifonda ETF registered a total net inflow of 540 million YuanAdditionally, the Huaxia Fund's A500 ETF stood out with a daily net inflow of 379 million Yuan, bringing its total assets to nearly 16.9 billion Yuan, which corresponds to an average trading volume of about 3.3 billion Yuan over the past month.

However, it was highlighted that, amidst the market's adjustments, the broader Shanghai and Shenzhen 300 index experienced significant outflows, totaling 1.5 billion YuanParticular ETFs, such as the Huatai-PB 300 ETF, saw more than 1.5 billion Yuan exiting, while several other products, including the SSE 50 and the CSI 2000 ETFs, also recorded substantial outflows.

Looking at thematic or sector-specific ETFs, the semiconductor ETF, having enjoyed recent gains, opted to safeguard its profits amidst the market downturn, resulting in nearly 900 million Yuan in net outflows on that day

Other technology-centric ETFs likewise experienced capital exitMoreover, consumption-focused ETFs, such as those specialized in alcoholic beverages and electric utilities, also faced net outflows exceeding 100 million Yuan each.

Even with sectors like semiconductors and consumer products facing short-term net selling pressure, numerous institutions remain confident regarding the long-term value prospects of these industriesFor instance, Huaan Fund has pointed out a significant event, the recent FORCES conference by Huoshanzhen, which unveiled an upgrade to the Doubao large model familyAs AI application chains continue to expand, new opportunities are anticipated to arise within related industries.

In a similar vein, China Europe Fund opines that considering the recovery pace of economic fundamentals and potential policy stimulus, opportunities for the upcoming year could be harnessed through three primary avenues: the recovery of domestic demand, re-inflation, and high-growth technologies