Funds borrowed from stock ETF flow into the market, broad-based products receive significant increase in holdings.

On July 14th, the A-share non-ferrous metal and coal resource sectors surged, with multiple non-ferrous metal-themed ETFs rising by more than 6%; the computing power sector rebounded strongly in the afternoon, with the ChiNext Index rising by over 3%, and multiple communication-themed ETFs rising by over 5%. It is worth noting that on July 13th, amidst a sharp correction in the A-share market, nearly 60 billion yuan of funds entered the market through stock ETFs for bottom fishing, making it the highest single-day inflow since April 8, 2025. Broad-based ETFs such as CSI 1000, SSE 300, and CSI 500 saw significant increase in holdings. Recently, the A-share technology sector has been experiencing intensified volatility. Industry experts suggest that the previous strong performance of technology growth track has accumulated a large amount of financing leverage. As market volatility intensifies, some leveraged funds are starting to exit actively or passively. From a medium-term perspective, the core logic supporting the upward trend of the A-share market has not changed due to this round of leverage unwinding. The current adjustment is more of a correction in trading structure, as the market is transitioning from an extreme structural market to style rebalancing phase. The trend of the AI industry remains unproven, and the third quarter may shift towards a "selective segmentation, performance verification" stage.