6.7 Billion in Major Fund Shift: Power Grid Equipment ETF Sees Heavy Buying, Oil and Gas Sector Faces Selloff

[Global Times Finance Comprehensive Report] The A-share market has recently shown significant structural adjustments. As of the close on March 12, 12 ETFs related to the power grid equipment index saw net inflows of over 6.7 billion yuan in the past week, while the 10 ETFs involving the oil and gas index experienced total outflows of about 6.7 billion yuan.

As market expectations for the construction of new power systems heat up, funds are rushing into the power grid equipment sector through ETFs. On March 11 alone, Huaxia Power Grid Equipment ETF saw a net inflow of 723 million yuan, with a total inflow of 3.5 billion yuan over the past week, reaching a latest scale of 34.3 billion yuan.

In the past month, leading fund inflows also included Guotai Fund Power Grid ETF, Huatai Bairui Fund Power ETF, and GF Fund Power ETF, which attracted 3.62 billion yuan, 1.43 billion yuan, and 1.409 billion yuan respectively.

Guoxin Securities analysts believe that the investment plan of up to 4 trillion yuan for State Grid Corporation during the 14th Five-Year Plan is gradually becoming clear. Major projects such as ultra-high voltage and flexible direct current transmission will accelerate, and super-long-term special bonds in 2026 will focus on supporting energy and power infrastructure updates. Additionally, the surge in AI computing power has become a new highlight, with increasing electricity demand. According to China Information and Communication Technology Institute, by 2030, China’s data center electricity consumption may exceed 7 trillion kWh, accounting for 5.3% of total social electricity consumption.

While funds are rushing into power equipment, the previously strong-performing oil and gas sector has quickly retreated. Guotai Fund Petroleum ETF experienced net outflows of 3.6 billion yuan in the past week, with Penghua Petroleum ETF and Invesco Petroleum ETF respectively seeing net outflows of 1.652 billion yuan and 491 million yuan.

(CNBC screenshot)

In terms of news, on March 11, the International Energy Agency (IEA) announced that 32 member countries unanimously agreed to release 400 million barrels of strategic oil reserves, but oil prices did not fall; instead, they rose on March 12. Since March, Brent crude futures briefly surged to nearly $120 per barrel before quickly retreating, with the largest intraday fluctuation exceeding 40%.

Industry insiders believe that escalating conflicts have led to a decline in global risk appetite, causing funds to shift from high-valuation growth stocks to defensive sectors such as high-dividend and cash flow-stable utilities and power companies. Meanwhile, geopolitical tensions have intensified global concerns over energy security, prompting countries to accelerate energy independence and control, which may benefit the power equipment and grid construction sectors. (Chen Shiyi)