ETF Review | Shanghai Composite Index Falls Over 1%, AI Hardware Crashes, Cross-Border ETFs Surge in Afternoon Trading, Nasdaq Tech ETF Rises Over 2%, Hua An Consumer ETF Plunges Over 7%

July 31, 2025 | The Shanghai Composite Index closed down 1.18%, the Shenzhen Component Index fell 1.73%, and the ChiNext Index dropped 1.66%. Earlier in the day, the market rose by over 1%. Cyclical stocks followed the market's decline, with insurance and real estate stocks leading the way. Nvidia was affected by news of a regulatory inquiry, causing AI hardware to crash in the afternoon; pharmaceutical stocks bucked the trend, rising strongly in the final hour. Military and brain-computer interface concepts also saw strong gains at the end.

As for ETFs, cross-border ETFs dominated the afternoon's gains, with Nasdaq Tech ETF, US50 ETF by E Fund, and US50 ETF by Yu'e Bao rising by 2.38%, 2.17%, and 2.02%, respectively. The domestic tech sector also saw strong gains in the afternoon, with Hua An Tech ETF and China Renaissance Technology ETF both rising by 1.88% and 1.36%, respectively. Other ETFs that rose include East Asia Tech ETF by Haitong Securities, Nikkei 225 ETF by E Fund, and Nikkei ETF by Guotai Junan Securities.

Hua An Consumer ETF plummeted 7.39% at the end of the day, with its latest net asset value standing at -4.96%. The real estate sector suffered a full-day decline, with Real Estate ETF and Housing ETF both falling by 4.12% and 3.93%, respectively. Cyclical sectors saw heavy losses, with Steel ETF and Mining ETF dropping by 3.98% and 3.89%, respectively.