At the time of the sharp correction in A-shares on July 13, nearly 60 billion yuan of bottom-cut capital flowed into the market through equity ETFs. The capital scale hit a single-day high since April 8, 2025. Broad-based ETFs such as China Securities 1000, Shanghai and Shenzhen 300, and China Securities 500 received significant increases in holdings. Industry institutions suggest that the technological growth circuit continued to strengthen in the early stages, and large-scale financing markets were accumulated. As market fluctuations intensified, some leveraged funds began to be withdrawn actively or passively.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 the clearance of the current round of leverage. The current adjustments are more of a correction in the trading structure, and the market is in a stage of transition from extreme structural market conditions to stylistic rebalancing. AI industry trends have not been falsified, and the third quarter may shift to the “select segmentation and test performance” stage.

Disclaimer:Webull uses external vendor Google Translation Service for news translations where we endeavour to ensure these are correct, however, we recommend that you please double-check this information accordingly. Webull is not responsible for translation errors or issues.