China’s Retail Investors Drive Stock ETF Inflows Ahead of Military Parade

China's stock ETF markets saw a dramatic reversal last week, with net inflows hitting 8.7 billion yuan ($1.2 billion) after nine consecutive weeks of outflows. The surge came as retail investors shifted household savings into equities ahead of Beijing's World War II commemoration parade.

The CSI 300 Index has rallied 25% since early April, recovering from US tariff-induced lows. Market observers note the 'national team' effect—where Chinese investors traditionally respond to government stability signals around major political events.

Notably absent were cryptocurrency mentions, as traditional equities dominated the narrative. The Shanghai-Shenzhen market rebound breaks a downtrend that began in July, suggesting renewed confidence in China's domestic markets despite global macroeconomic tensions.