On Tuesday, October 27, the nonferrous metals sector was active against a weaker broader market. The Huabao CSI Nonferrous Metals ETF (159876), which captures leaders across the nonferrous metals industry, saw its tracked index rise as much as 1.39% intraday before paring gains late in the session to close down 0.48% amid broader market pressure.
Among constituent stocks, Tianshan Aluminum led gains with a rise of more than 5%, while Yunnan Aluminium climbed over 3%. Yongxing Materials, China Molybdenum, and Shenhuo Group each gained more than 2%, while heavyweight names Zijin Mining and Aluminum Corporation of China rose over 1%. On the losing side, Youyan New Materials dropped more than 7%, while Huafeng Aluminum and Western Superconducting Technologies fell over 5%, weighing on index performance.
On the news front, data released by the National Bureau of Statistics on October 27 showed that profits of raw materials manufacturing enterprises above designated size grew 44.9% year-on-year in the first nine months of 2026, contributing 5.9 percentage points to the profit growth of all industrial enterprises above designated size. Strong demand for copper, aluminum and other base metals from AI and new energy sectors directly drove a 79.7% year-on-year increase in nonferrous metals industry profits. Industry insiders noted that the strong profit growth reinforced the logic that the recent share price pullback reflects valuation compression rather than weakening earnings.
At the policy level, the Ministry of Industry and Information Technology on October 20 explicitly proposed deepening capacity governance in the nonferrous metals industry, taking multiple measures to prevent overcapacity and curb low-level redundant construction, and designated copper smelting as a key category subject to strict controls on new capacity. This represents policy support for supply constraints on the domestic smelting side.
At the macroeconomic level, the Federal Reserve's October policy meeting is scheduled for October 27-28 (Tuesday to Wednesday) U.S. Eastern Time, with the interest rate decision to be announced in the early hours of October 29 Beijing time. According to CME FedWatch data, the probability of the Fed holding rates steady in October has risen above 83%.
On the earnings front, among the 60 constituent stocks of the index tracked by Huabao CSI Nonferrous Metals ETF (159876), all 32 companies that have disclosed third-quarter reports achieved profitability. Among them, Zijin Mining and China Molybdenum reported net profits attributable to shareholders of 57.526 billion yuan and 24.020 billion yuan for the first three quarters, respectively, ranking at the top. Ganfeng Lithium saw its net profit attributable to shareholders surge 195-fold year-on-year, while Tianqi Lithium posted a 30-fold increase. Yunnan Germanium, Zhangyuan Tungsten and 12 other stocks recorded doubled year-on-year growth in net profit attributable to shareholders.
On the valuation front, as of October 26, the price-to-book ratio (PB, LF) of the index tracked by Huabao CSI Nonferrous Metals ETF (159876) stood at 2.52, below the median of 2.62, placing it at a relatively low level of 45.06% since listing and highlighting its allocation value.
Huabao Fund believes that after the U.S. midterm elections in November, macroeconomic pressures are expected to ease. Combined with the nonferrous metals sector's earlier selloff driven by macro sentiment, the current position already offers value. Investors are advised to pay attention to valuation recovery opportunities in the nonferrous metals sector on dips.
In the computing power era, nonferrous metals provide the foundation. Attention should be paid to metals demand behind technological development. Huabao CSI Nonferrous Metals ETF (159876) and its feeder funds (Class A: 017140, Class C: 017141) comprehensively cover industry leaders in copper, aluminum, rare earths, gold, lithium, tungsten, molybdenum and tin, with heavyweight holdings including Zijin Mining, China Molybdenum, Northern Rare Earth and Aluminum Corporation of China. The 2026 interim report results showed that all 60 constituent stocks achieved profitability, with nearly half posting year-on-year growth in net profit attributable to shareholders exceeding 100%, providing solid support from strong fundamentals. Moreover, the number of constituent stocks significantly exceeds that of comparable nonferrous metals indices (30-50 stocks), offering better coverage of the semiconductor and new materials directions. For investors bullish on both technology and nonferrous metals, this ETF is an efficient tool for one-click allocation to the nonferrous metals industry and capturing sector beta.
Source: Shanghai and Shenzhen Stock Exchanges, etc., as of October 27, 2026. The fund manager assesses the risk level of this fund as R3-medium risk, suitable for balanced investors (C3) and above. Suitability matching opinions should be based on the sales institution's assessment. ETF fee notes: When investors subscribe or redeem fund shares, the subscription and redemption agency may charge a commission of no more than 0.5%. On-exchange transaction fees are subject to the actual charges of the securities company. ETFs do not charge sales service fees. Feeder fund fee notes: For the Huabao CSI Nonferrous Metals ETF Feeder Fund (Class A), the subscription fee is 1,000 yuan per transaction for subscription amounts of 2 million yuan (inclusive) or more, 0.6% for 1 million yuan (inclusive) to 2 million yuan, and 1% for amounts below 1 million yuan. The redemption fee is 1.5% for holding periods of less than 7 days and 0% for holding periods of 7 days (inclusive) or more, with no sales service fee. For the Huabao CSI Nonferrous Metals ETF Feeder Fund (Class C), there is no subscription fee. The redemption fee is 1.5% for holding periods of less than 7 days and 0% for holding periods of 7 days (inclusive) or more. The sales service fee is 0.3%.
Risk disclosure: Huabao CSI Nonferrous Metals ETF passively tracks the CSI Nonferrous Metals Index, which has a base date of December 31, 2013, and was launched on July 13, 2015. The constituent stocks of the index are adjusted in due course according to the index compilation rules, and its back-tested historical performance does not predict the future performance of the index. 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. Investors are responsible for any investment decisions they make independently. In addition, any views, analyses and forecasts in this article do not constitute investment advice of any kind to readers, nor shall they bear any responsibility for direct or indirect losses caused by the use of the content herein. Fund investment involves risks. Past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Fund investment requires caution. MACD golden cross signals have formed, and these stocks are performing well.
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