On Friday, February 27th, the nonferrous metals sector continued its strong performance, attracting a net inflow of 23.2 billion yuan from major funds throughout the trading day. The sector ranked second among the 31 Shenwan primary industries in terms of capital attraction. Nine stocks, including Hunan Gold Corporation Limited, Huaxi Nonferrous Metals, Xiamen Tungsten, and Zhongxi Nonferrous, surged to their daily limit-up. The Nonferrous Metals ETF (159876) saw its intraday gain peak at 3.82%, closing with a significant rise of 3.74%. The ETF's turnover for the day exceeded 100 million yuan, indicating active trading.
Key developments are centered on the rare earth and lithium industries: 1. Regarding rare earths, an explanatory session on export policies and the situation for rare earths and rare metals is scheduled for March 25th. Notably, prices for rare earths and minor metals continue to climb due to supply and demand dynamics. Overseas reports indicate that some US aerospace and semiconductor suppliers are beginning to refuse orders from certain clients due to a shortage of rare earths. Research firm SemiAnalysis stated that the United States currently has zero domestic scandium production and lacks operational alternative sources outside China, with existing inventories likely only sufficient for a few months. 2. In the lithium sector, Zimbabwe's Ministry of Mines has issued a ban on lithium ore exports. Following the precedent of cobalt price increases in 2025 triggered by the Democratic Republic of Congo's export suspension, Zimbabwe's restriction on lithium concentrate exports has heightened market expectations for rising lithium product prices. COFCO Futures pointed out that although there are supply increases from domestic salt lakes and Hunan lithium mines, they still cannot cover the gap left by Zimbabwe. If the embargo lasts no more than a month, a smooth transition relying on the resilience of domestic lithium ore and lithium salt inventories is possible, with limited actual impact. However, if the embargo exceeds one month, raw material supply tightness will intensify.
Looking ahead, does the nonferrous metals sector have further room to grow? CITIC Securities notes that even after significant gains in 2025, the upward momentum for nonferrous metals remains strong. Supply disruptions, pockets of high demand景气 (prosperity), and stockpiling activities provide robust support for metal prices. Increased trading activity fueled by loose liquidity and rising risk aversion due to geopolitical conflicts are expected to amplify metal price elasticity. The firm is optimistic about the allocation value of precious metals, industrial metals, battery metals, and strategic metals.
[The Nonferrous Metals Trend Has Arrived, An "Super Cycle" Appears Unstoppable] The underlying index of Huabao Nonferrous Metals ETF (159876) and its feeder funds (Class A: 017140, Class C: 017141) comprehensively covers industries such as copper, aluminum, gold, rare earths, and lithium, spanning different景气 cycles like precious metals (hedging), strategic metals (growth), and industrial metals (recovery). Full-category coverage allows for better capture of the sector's beta行情 (beta行情 - market movement). Furthermore, this ETF is a margin trading标的 (underlying), making it an efficient tool for a one-stop allocation to the nonferrous metals sector.
* Institutional views referenced from: ① COFCO Futures report "Lithium Carbonate: Supply Disruptions Reemerge" dated February 26th; ② CITIC Securities report "Metals | Embracing the Era of Metal Premiums: 2026 Investment Strategy" dated February 2nd. Reminder: Recent market volatility may be significant. Short-term gains or losses do not indicate future performance. Investors must make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position management and risk control.
ETF Fee Explanation: When subscribing for or redeeming fund shares, subscription/redemption agents may charge a commission of up to 0.5%. On-market trading fees are subject to the rates charged by the securities company. The ETF does not charge a sales service fee. Feeder Fund Fee Explanation: For the Huabao CSI Nonferrous Metals ETF Feeder Fund (Class A), the subscription fee rate is 1,000 RMB per transaction for subscription amounts of 2 million RMB or more, 0.6% for amounts between 1 million RMB (inclusive) and 2 million RMB, and 1% for amounts below 1 million RMB. The redemption fee rate is 1.5% for holding periods under 7 days, and 0% for holding periods of 7 days or more. No sales service fee is charged. The Huabao CSI Nonferrous Metals ETF Feeder Fund (Class C) charges no subscription fee. The redemption fee rate is 1.5% for holding periods under 7 days, and 0% for holding periods of 7 days or more. The sales service fee is 0.3%.
Risk Warning: The Huabao Nonferrous Metals ETF passively tracks the CSI Nonferrous Metals Index. The base date for this index is December 31, 2013, and it was published on July 13, 2015. The index's performance over the past five complete years is as follows: 2021: +35.89%; 2022: -19.22%; 2023: -10.43%; 2024: +2.96%; 2025: +91.67%. The index's constituent stocks are adjusted according to its compilation rules, and its historical backtested performance does not indicate future index performance. The mention of index constituents herein is for display purposes only; descriptions of individual stocks are not investment advice in any form and do not represent the holdings or trading动向 (movements) of any fund managed by the management company. The fund manager assesses this fund's risk等级 (level) as R3-Medium Risk, suitable for investors with a Balanced (C3) or higher risk profile. Suitability matching opinions should be based on the selling institution. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors are solely responsible for any independent investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice of any kind to the reader, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund does not indicate its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest in funds cautiously.
A MACD golden cross signal has formed, indicating positive momentum for these stocks.
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