Funds borrowed through stock ETFs flow into the market, and broad-based products are heavily increased holdings.

On July 13, as the A-share market significantly pulled back, nearly 60 billion yuan of funds entered the market through stock ETFs, setting a new single-day high since April 8, 2025. Broad-based ETFs such as the CSI 1000, CSI 300, and CSI 500 saw large increases in holdings. Industry institutions have pointed out that the previous strong performance of the technology growth sector has accumulated a large amount of financing, and with market volatility intensifying, some leveraged funds have started to actively or passively withdraw. Looking at the medium term, the core logic supporting the A-share market has not changed due to this round of leveraged unwinding. The current adjustment is more of a correction in trading structure, as the market is transitioning from an extremely structural rally to a style rebalancing phase. The trend of the AI industry has not been refuted, and the third quarter may see a shift towards a "selective sub-sector, performance evaluation" stage.