Data from the China Federation of Logistics and Purchasing on August 5 shows that in July, the price of praseodymium neodymium oxide, a key light rare earth product, rose 6.4% month-on-month among 50 monitored bulk commodities, leading the gains. Trading activity in the rare earth sector has simultaneously heated up.
The market's first rare earth industry-themed ETF, the Huatai-PineBridge Rare Earth ETF (516780), has seen net capital inflows totaling 153 million yuan over four consecutive trading sessions this week. During this period, its average daily trading volume expanded to 115 million yuan, boosting the fund's share count and asset size to 2.426 billion units and 2.080 billion yuan, respectively. This positions the ETF with notable scale and liquidity advantages. (The rare earth ETF was established on 21/2/26; data source: Wind, exchange data for the four trading sessions from 26/8/3 to 26/8/6, with other data as of 26/8/6)
The second half of 2026 marks the peak production and sales season for key magnet application sectors, including automotive and industrial robotics. Upstream raw material procurement typically begins around July, and with export volumes returning to normal, domestic demand for magnetic materials is trending upward. Domestic supply of praseodymium and neodymium remains tight, and export controls have been upgraded to full supply chain oversight, further strengthening the strategic importance of rare earths. Given multiple supply constraints, short-term rare earth prices are expected to fluctuate within a range, while the medium-to-long-term outlook is likely to improve. (Source: Chinese government website, June 15, "Implementation Regulations of the Mineral Resources Law of the People's Republic of China" officially took effect)
China Securities Co., Ltd. notes that rare earth prices showed significant divergence in July. Praseodymium neodymium oxide initially rose then fell, terbium oxide surged before correcting, while dysprosium oxide remained largely stable. On the supply side, raw material shortages at scrap processing plants have led to a notable drop in output. According to SMM data, July praseodymium neodymium oxide production fell 11% month-on-month. While August may see some marginal improvement, overall production remains suppressed. On the demand side, high-temperature holidays have led to reduced operating rates at motor manufacturers, dampening demand. August remains a slow season. However, the "Golden September and Silver October" period is traditionally a peak consumption season, and market expectations for demand recovery remain strong. Restocking by downstream buyers could resume from mid-to-late August, breaking the current pattern of weak supply and demand and driving prices to stabilize and rise. (Source: China Securities Co., Ltd., "China Securities: Weak Supply and Demand Weigh on Rare Earth Prices, Seasonal Peak Expectations May Support Upturn," 26/8/3)
Market analysis suggests that emerging sectors, including new energy vehicles, humanoid robots, and the low-altitude economy, are poised to become core drivers of long-term, rapid growth in rare earth demand. It is projected that the global rare earth supply-demand gap could continue to widen from 2026 onward. The simultaneous demand from four key areas—rising penetration of new energy vehicles, rapid growth in energy storage installations, large-scale construction of AI computing infrastructure, and the rollout of humanoid robots in factory pilot programs—is expected to sustain long-term demand for the industry. Additionally, rising global demand for stockpiling, combined with China's status as the holder of the world's only complete rare earth supply chain, gives it pricing power across mining, separation, and deep processing stages. (Source: Lanfu Caijing.com, "Supply-Demand Gap Widens, Rare Earth Prices May See Long-Term Support! Leading Companies See Earnings Surge," 26/8/6)
The Huatai-PineBridge Rare Earth ETF (516780) and its feeder funds (A-share: 014331 / C-share: 014332) track the CSI Rare Earth Industry Index. This index selects listed companies involved in rare earth mining, processing, trading, and application as samples to reflect the overall performance of the rare earth industry. Its top five constituent stocks are Northern Rare Earth, Baotou Steel, Aluminum Corporation of China, China Rare Earth, and GEM Co., Ltd., all of which are leading enterprises with comprehensive competitiveness in the industry. (Compilation scheme source: CSI Index Company; top five constituent stocks and data source: CSI Index Company, Wind, all as of 26/8/6; specific stocks are shown solely to illustrate the index's top five constituents and do not constitute stock recommendations or investment advice)
According to the 2025 annual product report, as of December 31, 2025, the Huatai-PineBridge Rare Earth ETF (516780) had 60,300 holders, making it the only rare earth-themed ETF in the entire market with over 50,000 holders during the period. As one of the first ETF managers in China, Huatai-PineBridge Asset Management has over 19 years of experience in index investing. It has developed index-based investment tools for investors, such as the Huatai-PineBridge CSI 300 ETF (510300) and the Huatai-PineBridge CSI A500 ETF (563360), which offer transparency, ease of trading, and low expense ratios. As of the end of June 2026, the company's ETFs had generated cumulative profits of over 180.6 billion yuan for holders over the past two years, making it one of only three public fund companies in the A-share market to achieve cumulative profits exceeding 160 billion yuan during that period. (Profit data source: Fund periodic reports, data range 24/7/1-26/6/30, calculated by Huatai-PineBridge Asset Management)
Note: When subscribing or redeeming ETF shares, the authorized broker may charge a commission of up to 0.5%, which includes fees charged by the stock exchange, registrar, and other relevant institutions. The commission for secondary market trading is determined by the broker's standard, with an exemption from stamp duty. The subscription fee rate for Class A shares of the Huatai-PineBridge Rare Earth ETF feeder fund is 1.2% for subscription amounts under 1 million yuan, 0.9% for amounts between 1 million yuan (inclusive) and 5 million yuan (exclusive), and 1,000 yuan per transaction for amounts of 5 million yuan or more. The subscription fee rate for Class C shares is 0%. The redemption fee rates for Class A and C shares are: 1.5% for both Class A and C shares if held for less than 7 days; 0.1% for Class A shares and 0% for Class C shares if held between 7 days (inclusive) and 30 days (exclusive); and 0% for both Class A and C shares if held for 30 days or more. The sales service fee for Class A shares is 0%, and for Class C shares, it is 0.25% per annum. The above information is extracted from the product's legal documents, all as of 26/8/6.
Risk Warning: Funds carry risks, and investment requires caution. If you wish to purchase related fund products, please pay attention to investor suitability management regulations, complete a risk assessment in advance, and invest in fund products with a risk level that matches your own risk tolerance. Past performance of a fund does not indicate its future performance. The performance of other funds managed by the same fund manager does not constitute a guarantee of the fund's performance. Fund investments involve investment risks. Please carefully read the fund contract, fund prospectus, and product summary prospectus and other legal documents to understand the specifics of the fund. The index is compiled and published by the CSI Index Company, and ownership belongs to them. The CSI Index Company will take all necessary measures to ensure the accuracy of the index but does not provide any guarantee regarding it and is not liable for any errors in the index. MACD golden cross signal formed, these stocks are rising well!
Comments