In the context of fluctuating performance in the A-share market last week, resource-related Exchange-Traded Funds (ETFs) showed relative strengthNotably, the A500 ETFs demonstrated robust performance as institutional investors expressed a strong interest, with four of these funds experiencing capital inflows exceeding 1 billion RMB each.

Looking ahead, analysts foresee a continuous upward adjustment in the valuation center of A-sharesThe prevailing sentiment suggests that a likely trajectory involves sustained fluctuations moving upward, thereby presenting opportunities for investors to capitalize on structural changes.

From the data compiled by Securities Times's Data Treasure, a total of 12 ETFs recorded an increase in net asset value during the past weekThis recovery was notably observed among passive index ETFs focused on domestic markets, which primarily invested in gold-related industries

On the other hand, the Qualified Domestic Institutional Investor (QDII) funds channelled their resources primarily into oil-related sectors.

The performance of the ETFs dedicated to oil and gas was particularly notable, with two prominent funds: the Invesco S&P Oil & Gas Exploration & Production ETF and the Harvest S&P Oil & Gas Exploration & Production ETF witnessing respective growth rates of 4.88% and 4.87%. Furthermore, several fund houses, including Huaxia Fund and Yongying Fund, witnessed their gold industry ETFs achieve net asset value increases exceeding 1.6%.

Huaxi Securities maintains a bullish view on the long-term prospects for gold, suggesting that rising gold prices represent a significant trend and that there will be increasing opportunities for gold investment in the future.

In contrast, Guosen Securities highlighted an evolving scenario for the oil market

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With the commencement of global interest rate cuts and ongoing economic recovery, demand for oil is showing modest improvementsThe supply side, led by OPEC+, continues to adhere to production cuts, which, combined with the high production costs of U.Sshale oil, positions oil prices to remain within a mid-to-high range, supporting a favorable environment for upstream oil and gas exploration.

Despite the overall positive outlook on resources, last week saw substantial declines across 84 ETFs, which experienced net asset value corrections exceeding 10%. This downturn was especially prominent in thematic ETFs related to financial technology, software, and information technology, with the Huabao CSI Financial Technology ETF leading this decline with a substantial drop of 13.78%. Other similarly affected ETFs include the Harvest CSI Software Services ETF and the Bosera Financial Technology ETF, with losses exceeding 13%.

Interestingly, despite the significant drops in unit net value, major investors have not fled the scene

Quite the opposite, funds like the Huabao ChiNext AI ETF and the Invesco CSI Big Data Industry ETF experienced net inflows exceeding 1 billion RMB each, indicating continued interest and confidence in certain sectors.

East Wu Securities recently published its investment strategy for financial technology, outlining that from 2021 to 2024, China's regulatory framework aims to extend its coverage across various domains, such as insurance, banking, and securitiesThe goal is to stimulate innovation, enhance risk management, and promote high-quality developmentThey expect short-term performance from securities technology while advocating for a focus on IT demands stemming from innovative solutions and international orders in the banking sector.

The securities firms also underscore that as policies gain traction and deep reforms in the capital markets unfold, improvements in the financial industry's fundamentals will likely follow

Progressive efforts in areas such as brokerages, in the context of technology integration, should create a conducive environment for the growth of Financial IT companies.

Another noteworthy trend involves the heightened interest of main funds in A500 ETFsOut of the ten ETFs that recorded net inflows exceeding 1 billion RMB last week, four were A500 ETFsSpecifically, the Guotai CSI A500 ETF and the Invesco CSI A500 ETF recorded net inflow amounts of 16.35 billion RMB and 11.9 billion RMB respectively.

During this market phase, A500-themed funds experienced a modest drawdown of around 5%, significantly less than their broader index counterpartsIndustry experts assert that the A500 index includes leading companies across various sectors, providing resilienceAs market liquidity solidifies and risk tolerance rises, growth-style investments tend to outperformConversely, when the market shifts towards a downtrend, value-oriented strategies tend to dominate; however, the A500 retains an edge as it does not completely relinquish its outperformance, ultimately yielding gains over the market.

According to China Galaxy Securities, the current moment is ripe for year-end trades, particularly in January when policies are expected to lean favorably