Markets consolidated today, September 17, with all three major A-share indices closing lower. The non-ferrous metals ETF Huabao (159876), which tracks sector leaders across the industry, retreated in tandem with its underlying index, closing down 2.59%.
Lithium sector leaders bucked the trend with notable strength, as Tianqi Lithium, Shengxin Lithium Energy, and Ganfeng Lithium all finished the session in positive territory.
On the macro front, the Federal Reserve announced early this morning Beijing time that it would raise the federal funds rate target range by 25 basis points, lifting the benchmark rate from 3.50%-3.75% to 3.75%-4.00%. This marks the Fed's first rate increase in over three years, following a pause since July 2023. The central bank's policy statement noted that current monetary policy remains insufficient to bring inflation back down to its 2% target.
The dot plot and remarks from officials leaned hawkish, with widespread market expectations of at least one more hike this year. Still, the confirmation of this rate move has partially released accumulated market pressure and eased policy uncertainty.
Gold's reaction to the Fed's decision defied expectations. Spot gold did not extend its decline; instead, it rebounded sharply after a brief dip, climbing 1.5% on the day to surpass $4,330 per ounce. Technical analysts suggest this could be a classic "sell-the-news" pattern. With bearish momentum tied to rate hike speculation now unwound, the downside room for gold prices may be narrowing.
With the Fed's September hike now in the rearview mirror, gold holding its lows could signal that bulls are regaining the upper hand, potentially setting the stage for a gradual rebound.
In other commodities, the main lithium carbonate futures contract surged over 4% intraday. The rally can be attributed to three key factors: supply disruptions—Fengcheng Jiuling has suspended operations for maintenance from September 15 to October 5 due to equipment failure, potentially reducing near-term output, compounded by shipping disruptions from Zimbabwe's lithium mines, all of which have tightened supply expectations. Pre-holiday restocking—the market is currently in a seasonal pre-holiday restocking window for downstream buyers, boosting buying interest at lower price levels. Battery and cathode material manufacturers have increased spot purchases for staged inventory building, providing direct momentum for lithium carbonate's rebound. Oversold bounce—the main lithium carbonate contract had been on a sustained downtrend, falling over 20% month-to-date in September and more than 40% from its May peak. After bearish factors such as inventory adjustments and weakening demand were priced in, short covering and bargain-hunting inflows drove the futures rebound.
The non-ferrous metals market is currently exhibiting a divergence between commodities and equities: commodity prices have rebounded first, while the equity side remains relatively subdued. Huabao Fund believes that commodities have already validated the fundamental picture through price action. The sluggishness in equities may be more of a sentiment-driven mispricing. As macro uncertainties gradually resolve, fundamentals are likely to reassert their dominance in pricing. Investors are advised to focus on non-ferrous metals companies with strong interim earnings.
Why just 10 ASX 200 shares?
In the age of computational power, non-ferrous metals form the foundation. The non-ferrous metals ETF Huabao (159876) and its feeder funds (A-share: 017140, C-share: 017141) offer comprehensive coverage of industry leaders across copper, aluminum, rare earths, gold, lithium, tungsten, molybdenum, and tin. Key holdings include Zijin Mining, CMOC Group, China Northern Rare Earth, and Aluminum Corporation of China.
Interim 2026 results show all 60 constituent stocks achieved profitability, with nearly half posting year-on-year net profit growth exceeding 100%, underpinned by strong fundamentals. Moreover, the ETF's constituent count is significantly higher than similar non-ferrous metals indices (typically 30-50 stocks), enabling broader coverage of semiconductor and new materials sectors. For investors bullish on both technology and non-ferrous metals, this ETF serves as an efficient tool for one-click exposure to the sector and capturing beta opportunities.
Source: Shanghai and Shenzhen stock exchanges, as of September 17, 2026.
Note: The individual stocks mentioned in this article are constituent stocks of the underlying index for the non-ferrous metals ETF Huabao (159876). As of end-August, their weightings were: Zijin Mining 11.14%, CMOC Group 7.12%, China Northern Rare Earth 4.40%, and Aluminum Corporation of China 3.31%. The constituent stocks are shown for illustrative purposes only and do not constitute any form of investment advice, nor do they represent the holdings or trading activities of any fund managed by the fund manager.
ETF fee disclosures: When subscribing or redeeming fund shares, the subscription/redemption agent may charge a commission of up to 0.5%. On-exchange trading fees are subject to brokerage charges. The ETF does not charge a sales service fee.
Feeder fund fee disclosures: For the Huabao CSI Non-Ferrous Metals ETF Feeder Fund (A-share), the subscription fee is RMB 1,000 per order for subscriptions of RMB 2 million or more, 0.6% for subscriptions between RMB 1 million and RMB 2 million, and 1% for subscriptions below RMB 1 million. The redemption fee is 1.5% for holdings of less than 7 days and 0% for holdings of 7 days or more. No sales service fee applies. For the C-share class, no subscription fee is charged, the redemption fee is 1.5% for holdings of less than 7 days and 0% for holdings of 7 days or more, and the sales service fee is 0.3%.
Risk disclosure: The non-ferrous metals ETF Huabao passively tracks the CSI Non-Ferrous Metals Index, which has a base date of December 31, 2013, and was published on July 13, 2015. Index constituent stocks are adjusted periodically according to the index methodology, and backtested historical performance does not indicate future index performance. The fund manager assesses the fund's risk level as R3-medium risk, suitable for balanced (C3) and above investors. Ensure the suitability assessment matches your profile as advised by your sales institution. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any forms of expression) is for reference only. Investors are solely responsible for their own investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice to readers, nor shall the publisher be liable for any direct or indirect losses arising from the use of this content. Fund investment carries risks. Past performance of a fund does not represent its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. Please invest with caution.
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