Today (January 7th), the Huabao Nonferrous Metals ETF (159876), which captures leading companies in the nonferrous metals sector, was active in early trading. Its intraday price surged over 1.6%, continuing to set new record highs since its listing. It entered a consolidation phase in the afternoon session alongside the broader market, currently fluctuating near the break-even line and is down 0.28% at present. Real-time turnover exceeded 69 million yuan, with the half-day trading volume already approaching yesterday's full-day total, indicating potential for further volume expansion to break through the listing high. The ETF's breakout on high volume may signal a buying opportunity for funds. As of this writing, the Huabao Nonferrous Metals ETF (159876) has seen a real-time net subscription of 56.40 million fund units. This follows five consecutive days of net fund inflows, totaling 97.49 million yuan. Amid the heated market activity, capital is rapidly moving in to establish positions. Regarding constituent stocks, rare earth leaders posted significant gains, with China Rare Earth Nonferrous Metals Co.,Ltd. hitting the daily limit-up. China Rare Earth rose over 6%, Northern Rare Earth gained more than 4%, and Shenghe Resources advanced over 3%. Additionally, Xingye Silver Tin rose more than 5%, while Huayou Cobalt and Western Superconducting increased over 4%. Stocks like Yunnan Tin and Nanshan Aluminium also followed the upward trend. On the news front, the Chinese government is considering targeted tightening of export license reviews for medium and heavy rare earth-related items. Furthermore, LME copper hit a further record high on Tuesday, and LME nickel briefly surged over 10% to a 19-month peak, as supply concerns fueled the rally in industrial metals. Trading dynamics observed by industry insiders indicate that Chinese investors have played a significant role this week in driving substantial price increases for metals including nickel, copper, and tin: metal prices surged during the LME Asian trading session accompanied by high volume, and strengthened again after the night session opened on the Shanghai Futures Exchange. Huaxin Futures believes that nonferrous metals possess both commodity and financial attributes, being influenced by both macroeconomic factors and supply-demand fundamentals. The outlook for the nonferrous metals market in Q1 2026 is relatively optimistic. 2026 marks the beginning of the 16th Five-Year Plan period, with credit policies expected to be relatively loose at the start of the year. The peak consumption season before the Spring Festival is also favorable for downstream demand. CSC Financial Futures suggests that the Federal Reserve's monetary policy in 2026 is expected to be dovish, with a high probability of further gradual interest rate cuts, providing a generally positive environment for the nonferrous metals market. The nomination and hearing process for the Fed Chair scheduled for January-February 2026 could lead the nonferrous market to "price in expectations" ahead of time, with gold and copper likely being the first to react. [The Nonferrous Metals Boom Has Arrived, An "Unstoppable Super Cycle"] The Huabao Nonferrous Metals ETF (159876) and its feeder fund (Class A: 017140, Class C: 017141) track an index that comprehensively covers sectors including copper, aluminum, gold, rare earths, and lithium, encompassing different cyclical phases such as precious metals (safe-haven), strategic metals (growth), and industrial metals (recovery). This full-category coverage allows for better capture of the entire sector's beta movements.
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