Market Overview - The A-share market experienced a correction from June 9 to June 13, with the major indices showing varied performance. The Sci-Tech 50 index led the decline, falling by 1.89%, while the low-valuation blue-chip indices were relatively resilient, with the CSI 300, CSI 1000, and SSE 50 down by 0.25%, 0.76%, and 0.46% respectively. Market sentiment was pressured by liquidity fluctuations [2] - The overall market saw a rotation among sectors, with funds favoring large-cap value stocks that have stable performance, while growth sectors faced valuation pressures. The Shanghai Composite Index decreased by 0.25%, the Shenzhen Composite Index fell by 0.60%, and the ChiNext Index rose by 0.22% [2] Sector Performance - Approximately 64% of the Wind 100 Concept Index rose last week, with 42% of sectors achieving positive returns. Notably, the non-ferrous metals, oil and petrochemicals, and agriculture sectors performed well, increasing by 3.79%, 3.50%, and 1.62% respectively. Conversely, sectors such as building materials, household appliances, and food and beverage saw significant declines, dropping by 2.77%, 3.26%, and 4.37% respectively [2] - The Wind primary industry index recorded an average increase of 1.11%, with leading sectors including energy (2.27%), healthcare (1.45%), and utilities (0.45%). In contrast, consumer staples (-3.14%), real estate (-1.61%), and industrials (-0.37%) underperformed [11] Fund Issuance - A total of 15 funds were issued last week, comprising 4 equity funds, 6 mixed funds, 4 bond funds, and 1 fund of funds (FOF), with a total issuance of 8.934 billion units [2][14] Global Asset Review - Global asset prices showed a positive trend last week, with U.S. stock indices rising due to favorable economic data, strong corporate earnings, and market expectations regarding the Federal Reserve's monetary policy. European markets exhibited mixed results, while the Asia-Pacific region saw gains, particularly in South Korea due to economic recovery expectations [3] - In the commodities sector, energy prices rebounded sharply due to geopolitical events, while natural gas prices fell due to increased supply and seasonal demand changes. Precious metals like gold and silver saw price increases, whereas copper prices slightly declined [3] Domestic Bond Market - The domestic 10-year and 30-year government bond futures rose by 0.11% and 0.65% respectively, indicating a growing preference for medium to long-term assets. The overall long-term interest rates in China remained at historical lows [12]

Figure 1. Latest flows in DM and EM equity funds by geo focus | 14- May- 2025 | | Weekly Flow (USD bn) | | | Fund | 13W Wkly | | --- | --- | --- | --- | --- | --- | --- | | | | ETF (blue) vs non- ETF (grey) | | | Perf | Flow | | -10.0 | - | 10.0 | 20.0 | 30.0 | | | | Global | 5.2 | 5.1 | 0.2 | | 2.7% | | | North America | 20.0 | 20.5 | -0.6 | | 4.6% | | | Western Europe | 2.7 | 2.2 | 0.5 | | 1.7% | | | JP | 0.8 | 2.1 | -1.3 | | 2.3% | | | DM AxJ | -0.3 | -0.1 | -0.2 | | 1.7% | | | GEM | -0.2 | 1.4 | -1.6 | ...