Global financial markets are experiencing severe fluctuations, and cross-border ETFs are plummeting!

Global financial markets suffer a significant downturn

On August 1st, all three major U.S. stock indices closed sharply lower, with the Dow Jones Industrial Average falling by 1.21% to 40,347.97 points; the S&P 500 index fell by 1.37% to 5,446.68 points; the Nasdaq Composite index dropped by 2.3% to 17,194.15 points.

The sharp decline in U.S. stocks overnight triggered a global chain reaction. On the morning of August 2nd, the Asia-Pacific stock markets opened amidst turmoil, showing a pattern of widespread collapse. Among them, the Japanese stock market suffered the most, with the Nikkei 225 index falling by more than 5% during the session.

By the close of the morning session, the Nikkei 225 index had fallen by 1,864.48 points, a drop of 4.89%, to 36,261.85 points; the Topix index closed the morning session down by 4.7%, at 2,577.51 points. In the morning trading, electrical appliance stocks led the decline, with all sectors falling; out of 2,135 stocks, 2,081 fell.

As of the time of writing, South Korea's KOSPI index had fallen by 2.7%, while Australia's S&P/ASX 200 index and the MSCI Asia-Pacific index had both fallen by 2%.

Hong Kong stocks opened low and at one point fell by more than 2%, with bank stocks collectively declining.

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In terms of A-shares, the three major indices opened low collectively, maintaining a narrow range of fluctuations in the morning, and as of the time of writing, none of the main indices had turned positive.

Cross-border ETFs such as U.S. and Japanese stocks plummet collectively

The severe fluctuations in the peripheral markets have driven a collective decline in the secondary market of cross-border ETFs listed on the Shanghai and Shenzhen stock exchanges.As of the time of writing, 14 cross-border ETFs have fallen by more than 4%. Among them, the NASDAQ 100 ETF has dropped by 4.4%, with a transaction volume reaching 170 million yuan.

ETFs invested in the Japanese and U.S. markets, such as the Tokyo Stock Exchange Index ETF, the NASDAQ Technology ETF, the Dow Jones ETF, the NASDAQ 100 ETF, and the Fuguo NASDAQ ETF, have all suffered significant declines of over 4%. In addition, the China-South Korea Semiconductor ETF and the Asia-Pacific Select ETF have also experienced substantial declines.

The turnover rate of some cross-border ETFs has increased significantly, for example, the Dow Jones ETF's turnover rate is close to 23%, and the turnover rates of the Fuguo NASDAQ ETF and the China-South Korea Semiconductor ETF are both above 10%.

In the past two weeks, although cross-border ETFs have continued to adjust, some ETFs still have a high premium, and institutions have warned investors to be vigilant about the premium risk.