Rare Earth Included in National Strategic Mineral Catalog, Huatai-PineBridge Rare Earth ETF (516780) Emerges as Key Tool for Capital Deployment

Driven by favorable policy developments and an improving supply-demand dynamic, the rare earth industry's outlook is expected to remain positive. Several leading companies reported strong year-on-year performance in the first quarter, potentially solidifying the sector's medium- to long-term investment value. Market capital is actively positioning for opportunities in this sector. Wind data shows that the market's first rare earth industry-themed ETF, the Huatai-PineBridge Rare Earth ETF (516780), has seen consecutive net inflows since early May (May 6-11), establishing itself as a significant instrument for deploying capital into the rare earth sector. On the policy front, the draft "Implementation Regulations of the Mineral Resources Law of the People's Republic of China" was reviewed and passed at the State Council executive meeting on May 9, 2026, formally including rare earths and other minerals in the national strategic mineral catalog. The regulations, through measures such as centralizing approval authority, strict total control, comprehensive supply chain oversight, tightened export controls, and stringent ecological constraints, aim to strengthen national strategic management of rare earths from a top-level regulatory perspective. This is expected to drive further industry consolidation, standardization, value reassessment, and reshape the sector's supply and competitive landscape. In terms of market news, a leading rare earth company held an earnings briefing on May 11, expressing an optimistic view on the industry's long-term development. The company stated that with the steady increase in downstream end-user demand this year, prices for some rare earth products have shown an upward trend. In the medium to long term, as the application of rare earths continues to expand into emerging fields, coupled with technological advancements within the industry, the application scenarios for rare earths are gradually broadening. This is anticipated to lead to a sustained improvement in the supply-demand balance for rare earths. The positive developments from both policy and news fronts have significantly increased market attention on products like the Huatai-PineBridge Rare Earth ETF (516780). It is reported that the Huatai-PineBridge Rare Earth ETF (516780) is the market's first rare earth industry-themed ETF. It closely tracks the CSI Rare Earth Industry Index, which selects securities of listed companies involved in rare earth mining, processing, trading, and applications as its components to reflect the overall performance of listed companies in the rare earth industry. Its top five holdings are 北方稀土 China Northern Rare Earth (Group) High-Tech Co., Ltd., 金风科技 Xinjiang Goldwind Science & Technology Co., Ltd., 厦门钨业 Xiamen Tungsten Co., Ltd., 盛新锂能 Chengxin Lithium Group Co., Ltd., and 格林美 GEM Co., Ltd., all of which are leading companies with strong competitiveness in the industry. According to the product's 2025 annual report, as of December 31, 2025, the number of holders of the Huatai-PineBridge Rare Earth ETF (516780) reached 60,300 households, making it the only rare earth-themed ETF in the market at that time with over 50,000 holder households. The fund manager of the Huatai-PineBridge Rare Earth ETF (516780) and its feeder funds (Class A 014331 / Class C 014332), Huatai-PineBridge Fund Management Co., Ltd., is one of China's first ETF managers. With over 19 years of experience in the index investment field, it has developed transparent, convenient, and low-cost index tools for investors, such as the Huatai-PineBridge CSI 300 ETF (510300) and the Huatai-PineBridge A500 ETF (563360). As of the end of 2025, the company's ETFs had generated cumulative profits exceeding 164 billion yuan for holders over the preceding two years, making it one of only four fund companies in the entire market to achieve cumulative profits over 100 billion yuan during that period.