Market volatility at a critical juncture once again makes broad-based ETFs a key window into institutional fund movements.

On the morning of October 9, the market fell broadly, with the ChiNext Index dropping below 3,000 points.

During the session, core broad-based ETFs including ChinaAMC STAR 50 ETF, E Fund ChiNext ETF, Southern CSI 1000 ETF, and Huatai-PineBridge CSI 300 ETF saw significant volume increases.

A group of core broad-based ETFs saw notably amplified trading activity. Notably, the half-day turnover of several small and mid-cap broad-based ETFs, including Southern CSI 1000 ETF and Southern CSI 500 ETF, had already surpassed their full-day volume from the previous trading day, with institutional fund competition unfolding as early as the morning session.

Morning Trading Volume Surge

As of the morning close, ChinaAMC STAR 50 ETF fell 3.58%, but its turnover reached 6.835 billion yuan, indicating very active on-market chip exchange. E Fund ChiNext ETF followed with a turnover of 5.336 billion yuan, a figure close to its full-day turnover of 5.548 billion yuan on the previous trading day (October 8). In addition, Southern CSI 1000 ETF recorded a turnover of 3.521 billion yuan, while Huatai-PineBridge CSI 300 ETF and Southern CSI 500 ETF posted turnovers of 3.285 billion yuan and 2.748 billion yuan, respectively. Emerging broad-based ETFs also maintained strong momentum, with Huatai-PineBridge A500 ETF and Southern A500 ETF both exceeding 2.5 billion yuan in turnover, reaching 2.548 billion yuan and 2.501 billion yuan, respectively.

The volume surge in small and mid-cap broad-based ETFs was particularly prominent. On the previous trading day (October 8), the full-day turnovers of Southern CSI 1000 ETF and Southern CSI 500 ETF were 2.596 billion yuan and 2.299 billion yuan, respectively. On the morning of October 9, their turnovers expanded to 3.521 billion yuan and 2.748 billion yuan, both exceeding the previous trading day's full-day levels. The turnover of ChinaAMC CSI 1000 ETF also rose from 1.65 billion yuan on the previous trading day to 1.86 billion yuan.

While large-cap broad-based ETFs generally approached their previous full-day turnover levels during the session, the volume surge in small and mid-cap broad-based ETFs was even more eye-catching. One notable change is that unlike previous market rounds where broad-based ETF volume was concentrated in a last-half-hour push before the close, this round of fund activity has been significantly advanced in timing. After the October 9 open, core broad-based ETFs continuously saw large block trades, with many products' turnover at the morning close approaching or even surpassing their full-day turnover from the previous trading day. Funds are no longer waiting until before the close to compete, choosing instead to act directly during the morning adjustment phase, as institutions adopt a more proactive stance in the face of market fluctuations.

Broad-Based ETFs as Market Ballast

Broad-based ETFs tracking the STAR 50, ChiNext Index, CSI 300, CSI 500, CSI 1000, and CSI A500 have long been regarded as the "ballast" of the A-share market and core barometers for observing institutional fund inflows and outflows. Market participants believe that collective massive turnover at this level among broad-based ETFs is difficult to be driven by retail funds alone, and more likely reflects institutional fund position adjustments and allocation moves.

Since the second half of this year, A-shares have seen multiple instances of concentrated broad-based ETF volume surges. On August 19, the market also experienced a round of adjustment, with growth sector indices such as the ChiNext Index and STAR 50 leading declines. In the final half hour before the close, multiple core broad-based ETFs suddenly saw significant volume increases, drawing intense market attention. As of that day's close, the turnovers of ChinaAMC STAR 50 ETF and E Fund ChiNext ETF both exceeded 10 billion yuan, with Huatai-PineBridge CSI 300 ETF following closely at 7.147 billion yuan. Looking further back, the benchmark broad-based ETF, Huatai-PineBridge CSI 300 ETF, saw volume surges on both July 13 and 14. At that time, small and mid-cap broad-based ETFs were also sought after by funds. On July 13, Southern CSI 500 ETF and Southern CSI 1000 ETF each saw net inflows of approximately 6 billion yuan, ChinaAMC CSI 1000 ETF recorded net inflows of 4.845 billion yuan, and both ChinaAMC STAR 50 ETF and E Fund ChiNext ETF saw net inflows of 2 billion yuan each.

From the perspective of fund flows, the continued volume surges in broad-based ETFs may reflect that at key market moments, institutional funds are using broad-based tools for adjustment.

This article is for reference only and does not constitute investment advice. Investors who act on this information do so at their own risk.