On March 20, the Nonferrous Metals ETF (159876), which had previously experienced seven consecutive days of declines, staged a rebound. During the morning session, its intraday gain reached 1.39%, and it is currently up 0.40%, suggesting potential opportunities for capital deployment at lower levels.
Among its constituent stocks, Yunnan Germanium Industry surged to the daily limit-up. Hailiang Co., Ltd. rose over 4%, while Hunan Silver and Yongxing Special Materials advanced more than 3%. Other gainers included Hunan Gold, Chihong Zinc & Germanium, Xingye Silver & Tin, and Yunnan Tin Company.
From a medium to long-term perspective, several institutions remain optimistic about gold. Wells Fargo has set a year-end target price range of $6,100 to $6,300 per ounce, citing structural support for gold prices: global central banks have been net buyers of gold for many consecutive years, the long-term credibility of the US dollar is gradually eroding, and geopolitical risk premiums, though temporarily overshadowed by the narrative of interest rate cuts, have not truly disappeared.
CITIC Securities believes that following the conclusion of Middle Eastern geopolitical events, gold has the potential to reach new highs. Historically, the medium-term trend of gold prices after Middle East conflicts has depended on US dollar credibility and liquidity factors. Looking ahead to the current conflict, it is anticipated that the continuation of loose liquidity and weakening US dollar credibility will continue to push gold prices higher. Historically, advantages in valuation or stock price percentiles have amplified the upside potential for the gold sector. Currently, the PE valuations of leading companies have retreated to historically low levels of 15-20x. Considering that recent stock price peaks have been highly synchronized with gold price peaks, there is optimism that new highs in gold prices will drive new highs in stock prices.
Notably, the HALO trade has become one of the core themes in the global capital markets. The nonferrous metals sector, characterized by its heavy-asset nature, scarcity of strategic resources, and essential role in AI infrastructure, stands as a primary beneficiary of the HALO trade.
Looking forward, can the nonferrous metals sector continue to rise? Industrial Securities suggests that the sector may regain momentum for an upward move. The core rationale is that the current nonferrous metals cycle is driven by overseas manufacturing restructuring and unconventional inventory building against the backdrop of deglobalization. This cycle differs from traditional monetary cycles and is expected to be more prolonged and persistent in terms of duration.
The Huabao Nonferrous Metals ETF (159876) and its feeder funds (Class A: 017140, Class C: 017141) track an index that comprehensively covers industries such as copper, aluminum, gold, rare earths, and lithium, spanning different cycles including precious metals (for hedging), strategic metals (for growth), and industrial metals (for recovery). This broad coverage allows for better capture of the sector's beta movements. Furthermore, this ETF is a margin trading security, making it an efficient tool for gaining exposure to the nonferrous metals sector.
As of the end of February, the Huabao Nonferrous Metals ETF (159876) had a latest size of 2.427 billion yuan, with an average daily turnover exceeding 100 million yuan over the past month. Among the three ETF products in the market tracking the same underlying index, it leads in both size and liquidity.
Note: The previous on-market ticker for the Huabao Nonferrous Metals ETF (159876) was Nonferrous Metals Leaders ETF. ETF fee-related note: When investors subscribe for or redeem fund shares, subscription/redemption agents may charge a commission of up to 0.5%. On-market trading fees are subject to the rates actually charged by securities firms. ETFs do not charge sales service fees. Feeder fund fee-related note: 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. A sales service fee of 0.3% is charged. Risk Disclosure: The Huabao Nonferrous Metals ETF passively tracks the CSI Nonferrous Metals Index. The base date of 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 past performance does not indicate its future results. The mention of index constituents in this article is for illustrative purposes only; descriptions of individual stocks are not investment recommendations in any form and do not represent the holdings or trading动向 of any fund managed by the management company. The fund manager assesses this fund's risk level as R3 - Medium Risk, suitable for Balanced (C3) and higher risk profile investors. Suitability matching opinions are subject to the selling institution. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice of any kind to the reader, and no responsibility is accepted for any direct or indirect losses arising from the use of the content herein. Fund investment carries risks. The past performance of a fund does not indicate its future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest cautiously in funds.
A MACD golden cross signal has formed, and these stocks are performing well.
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