Today (March 4), the Nonferrous Metals ETF (159876), which aggregates leading companies in the nonferrous metals sector, is consolidating with the market, currently trading near the flat line. Capital appears optimistic about the sector's future performance, actively entering to build positions. As of writing, the ETF has seen a net real-time subscription of 37.2 million units, following two consecutive days of net inflows totaling 66.65 million yuan.
Among the constituent stocks, aluminum industry leaders are notably leading the gains. Zhongfu Industrial has risen over 7%, while Yunnan Aluminum, Tianshan Aluminum, and Nanshan Aluminum have each gained more than 4%. Shenhuo Group, Aluminum Corporation Of China Limited, and Huafeng Aluminum are also trading higher. Additionally, China Rare Earth has increased over 4%, with Boway Alloy and Hailiang Co. rising more than 2%.
The HALO (Heavy Assets, Low Obsolescence) trade is one of the core themes in the current global capital markets. Its fundamental logic involves going long on tangible hard assets that are difficult for AI to replace and are essential for AI infrastructure. The nonferrous metals sector, characterized by heavy asset intensity, strategic resource scarcity, and essential demand for AI-related infrastructure, stands as a primary beneficiary of the HALO strategy.
CITIC Securities notes that escalating geopolitical events in the Middle East have significantly increased risks related to aluminum production capacity, shipping capabilities, and energy supply. Potential disruptions to aluminum production in the Middle East and the risk of a secondary energy crisis overseas cannot be overlooked. Reflecting on the 2021-2022 energy crisis, aluminum prices and the sector saw maximum gains of 60% and 100%, respectively. Looking ahead, growing supply concerns within the aluminum industry chain may drive prices beyond expectations. Combined with strong medium- to long-term supply-demand dynamics for aluminum, the outlook for both price increases and valuation expansion in the aluminum sector remains positive.
Can the nonferrous metals sector continue to rise? Industrial Securities believes that the sector may regain momentum for an upward trend by mid-year. On a broader level, the current nonferrous metals cycle is driven by overseas manufacturing restructuring and unconventional inventory building against a backdrop of deglobalization. This cycle differs from traditional monetary cycles and is expected to be more prolonged and persistent.
[The Nonferrous Metals Trend is Here: The "Super Cycle" is Unstoppable]
The Nonferrous Metals ETF Huabao (159876) and its feeder funds (Class A: 017140, Class C: 017141) track an index that comprehensively covers sectors including copper, aluminum, gold, rare earths, and lithium. It spans different cycles such as precious metals (safe-haven), strategic metals (growth), and industrial metals (recovery), offering broad exposure to capture the sector's beta movements. Additionally, this ETF is a margin trading target, providing an efficient tool for investing in the nonferrous metals sector.
Note: The Nonferrous Metals ETF Huabao (159876) was previously known as the Nonferrous Metals Leaders ETF. Reminder: Recent market volatility may be significant; short-term gains or losses do not indicate future performance. Investors should make rational investment decisions based on their financial situation and risk tolerance, paying close attention to position and risk management.
ETF Fee Information: When subscribing or redeeming fund units, subscription/redemption agents may charge a commission of up to 0.5%. Trading fees are subject to the rates set by securities firms. The ETF does not charge a sales service fee. Feeder Fund Fee Information: For the Huabao CSI Nonferrous Metals ETF Feeder Fund (Class A), the subscription fee is 1,000 RMB per transaction for amounts of 2 million RMB or more, 0.6% for amounts between 1 million RMB and 2 million RMB, and 1% for amounts below 1 million RMB. The redemption fee is 1.5% for holdings under 7 days and 0% for holdings of 7 days or more. No sales service fee is charged. For the Huabao CSI Nonferrous Metals ETF Feeder Fund (Class C), there is no subscription fee. The redemption fee is 1.5% for holdings under 7 days and 0% for holdings of 7 days or more. A sales service fee of 0.3% applies.
Risk Disclosure: The Nonferrous Metals ETF Huabao passively tracks the CSI Nonferrous Metals Index, which has a base date of December 31, 2013, and was launched on July 13, 2015. The index's performance over the past five full 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 performance does not indicate future results. The mention of individual stocks in this article is for illustrative purposes only and does not constitute investment advice or reflect the holdings or trading activities of the fund manager. The fund manager assesses this fund's risk level as R3-Medium Risk, suitable for Balanced (C3) and higher risk-tolerant investors. Suitability assessments should be confirmed with the sales institution. All information provided herein is for reference only, and investors are solely responsible for their investment decisions. The views, analyses, and forecasts presented do not constitute investment advice, and no liability is accepted for any direct or indirect losses resulting from the use of this content. Fund investments carry risks; past performance does not guarantee future results, and the performance of other funds managed by the fund manager does not indicate the future performance of this fund. Invest with caution.
A MACD golden cross signal has formed, indicating positive momentum for these stocks.
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