The nonferrous metals sector continues its strong performance! Today (December 22), ChinaAMC Nonferrous Metals ETF (159876), the largest ETF tracking its benchmark index*, surged at market open, with its intraday price rising over 2.9% to test its post-listing high (0.958 yuan). It ultimately closed up 2.37% with a daily turnover of 66.51 million yuan, a 28% increase from the previous session. Since its recent low on April 8, the ETF has rallied 89.68%, significantly outperforming major indices like the Shanghai Composite (+26.51%) and CSI 300 (+28.48%).
Sector leaders showed robust gains: Silver producer Baiyin Nonferrous Metals hit the daily limit-up, while Yunnan Chihong Zinc & Germanium (minor metals) and Hunan Silver both rose over 7%. Rare earth leader Guangdong Rising and gold producer Western Gold also advanced. Heavyweights Zijin Mining and Shandong Gold climbed more than 4%.
Market analysts note complex drivers behind this nonferrous metals rally, with distinct sectoral dynamics: - **Gold**: Spot gold hit a historic high of $4,400/oz, driven by December's rate cut, better-than-expected unemployment/CPI data boosting January cut expectations, and the BoJ's rate hike. Structural factors like central bank gold purchases (especially given China's low reserves) and rising U.S. deficits suggest sustained upward pressure. - **Industrial Metals**: Copper and aluminum remain strong. CITIC Securities highlights dual drivers: Fed rate cuts (financial attribute) and tight global inventories coupled with China's recovery and green energy demand (commodity attribute).
Looking ahead, CICC predicts nonferrous metals will lead 2026's market gains. Goldman Sachs, JPMorgan, and Bank of America project gold could challenge $5,000/oz next year, with central bank buying as key support. Citi forecasts continued copper price growth amid improving fundamentals.
**Investment Strategy**: Given sector divergence, ChinaAMC Nonferrous Metals ETF (159876) and its feeder funds (Class A: 017140; Class C: 017141) offer diversified exposure to copper, aluminum, gold, rare earths, and lithium, mitigating single-commodity risks.
*As of December 19, ChinaAMC Nonferrous Metals ETF (159876) held 774 million yuan in assets, the largest among three ETFs tracking the same index.
**Risk Disclosure**: The ETF passively tracks the CSI Nonferrous Metals Index (base date: 2013-12-31; launched: 2015-07-13). Past annual returns: +35.84% (2020), +35.89% (2021), -19.22% (2022), -10.43% (2023), +2.96% (2024). Index composition may change per rules; historical performance doesn’t guarantee future results. This content doesn’t constitute investment advice. Fund investments carry risks.
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