Funds and Chinese assets are forming a positive cycle, industry insiders: investor sentiment will gradually improve.

The trading activity in the Chinese stock market continues to rise, with funds and Chinese assets forming a positive cycle: On the A-share side, since July, funds have accelerated into industry-themed ETFs, actively managed equity funds have significantly increased issuance, and institutional positions continue to rise; On the Hong Kong stock side, as of August 11, the net inflow of southbound funds since the beginning of the year has exceeded 800 billion yuan, surpassing the full year of 2024, reaching a historical high, with impressive net inflow data for cross-border ETF funds. However, some fund investors still hold a cautious wait-and-see attitude. Industry insiders believe that as the money-making effect further spreads, investor sentiment will gradually improve.