Core Viewpoint - Several public funds have announced the addition of broker-dealers as market makers for their ETF products to enhance liquidity, although improving the performance of these ETFs is considered a more effective solution for liquidity enhancement [1][4] Group 1: Market Maker Implementation - The addition of broker-dealers as market makers is a method to improve the liquidity of ETF products, with recent announcements from multiple fund companies indicating this trend [1] - As of June 30, 2025, the Shanghai Stock Exchange has 20 main market makers and 12 general market makers providing liquidity services for 746 fund products, with 688 ETFs having market makers, representing 98% of all ETFs [2] - The Shenzhen Stock Exchange has 27 liquidity service providers for 491 ETF products, indicating a high coverage rate of market makers in the ETF market [2] Group 2: ETF Market Characteristics - The number of listed ETFs has exceeded 1,200, but there is significant product homogeneity, leading to investor confusion, particularly with 31 ETFs tracking the same index [2] - As of August 1, 2023, 20 ETFs have opted for liquidation, highlighting the potential for a wave of ETF closures despite their index-tracking nature [2] Group 3: Trading Activity Disparities - ETF trading shows a "two extremes" scenario, with some products having daily trading volumes exceeding 10 million shares, while others struggle with volumes below 100 shares [3] - The reliance on market makers alone is insufficient for enhancing liquidity; active investor participation is crucial for vibrant trading [3] - ETFs with strong performance tend to attract more investment, leading to better liquidity, similar to trends observed in the stock market [3] Group 4: Recommendations for Fund Companies - For public funds, focusing on improving the performance of ETF products through various means is deemed more effective for enhancing liquidity than merely relying on market makers [4]

Core Viewpoint - The article discusses the challenges faced by many ETFs due to significant homogenization and poor management, leading to a decline in their market presence and liquidity issues [1][7]. Group 1: ETF Market Dynamics - Many ETFs, including the popular CSI A500 ETFs, have experienced a sharp reduction in shares this year, with some products facing liquidity shortages due to small scale [1][7]. - The "Matthew Effect" in the ETF market is becoming more pronounced, with larger funds attracting more investment while smaller funds struggle to gain traction, leading to potential liquidation risks for underperforming products [7][8]. Group 2: Introduction of Market Makers - Several public funds have announced the addition of brokerages as market makers for their ETF products to enhance liquidity in the secondary market [2][3]. - As of August 1, multiple funds, including those from Guolian Fund and Huatai-PineBridge Fund, have signed agreements with brokerages to facilitate trading operations for their ETFs [3]. Group 3: Liquidity Services and Market Coverage - By June 2025, the Shanghai Stock Exchange had 20 primary market makers and 12 general market makers providing liquidity services for 746 fund products, with 98% of all ETFs having market maker coverage [4][5]. - The Shenzhen Stock Exchange had 27 liquidity service providers covering 491 ETF products, with many ETFs supported by multiple market makers [5]. Group 4: Importance of Market Makers - Analysts emphasize that the introduction of brokerages as primary market makers is crucial for improving trading efficiency and responding to complex trading demands [6]. - The growing role of liquidity service providers in the ETF ecosystem is highlighted, with a focus on the need for public funds to prioritize the management of ETF liquidity to seize growth opportunities [6].

Group 1 - The rapid development of ETFs has led to many products facing issues of homogenization and poor management, resulting in significant share reductions and liquidity problems for some smaller products [1][5] - Several public funds have announced the addition of brokerages as market makers for their ETF products to enhance liquidity in the secondary market [1][2] Group 2 - On August 1, Guolian Fund announced an agreement with Ping An Securities and Great Wall Securities to act as market makers for its ETF, effective from August 1, 2025 [2] - Other funds, such as Huatai-PineBridge and E Fund, have also added brokerages as market makers for their ETFs, with over 40 announcements made in July alone [2] Group 3 - The presence of market makers is crucial for maintaining active trading in ETFs, with data showing that as of June 30, 2025, the Shanghai Stock Exchange had 20 primary market makers and 12 general market makers covering 746 fund products [3] - The Shenzhen Stock Exchange reported having 27 liquidity service providers for 491 ETF products as of mid-2023 [3] Group 4 - Analysts suggest that increasing the number of brokerages as primary market makers can significantly improve trading efficiency and quality, ensuring quick and accurate responses to large fund inflows and complex transactions [4] - The growing role of liquidity service providers in the ETF ecosystem is emphasized, with wealth management platforms increasingly using liquidity metrics to select quality ETFs [4] Group 5 - The "Matthew Effect" in the ETF industry is becoming more pronounced, with some ETFs facing shrinking scales and liquidity crises, particularly among previously popular products [5][6] - Statistics indicate that the number of ETFs choosing to liquidate has increased, with 20 index funds opting for liquidation as of August 1, including some high-performing thematic funds [6]