Spot gold continued its upward trajectory today (May 6), surging over $100 at its intraday peak. Among popular ETFs, Huabao's Nonferrous Metals ETF (159876), the largest fund tracking its benchmark index, fluctuated higher, continuing its strong advance in the afternoon session. Its on-market price is currently up 3.81%, with real-time turnover exceeding 74 million yuan, indicating active trading. During the session, it reclaimed both its 10-day and 60-day moving averages.
Regarding constituent stocks, four companies hit the daily upside limit: Zhongjin Lingnan, Hailiang Co., Ltd., Yunnan Chihong Zinc & Germanium Co., Ltd., and Huaxi Nonferrous Metals Co., Ltd. Among heavyweight constituents, Zijin Mining Group Co., Ltd. rose over 2%, China Molybdenum Co., Ltd. gained more than 4%, while Aluminum Corporation of China Limited and China Northern Rare Earth (Group) High-Tech Co., Ltd. both advanced over 3%.
The nonferrous metals industry delivered an impressive performance report for the first quarter of this year. Taking the 60 constituent stocks of Huabao's Nonferrous Metals ETF (159876) as an example, 59 of them were profitable. Eighty percent of the companies achieved double-digit year-on-year growth in net profit attributable to parent company shareholders, with 22 companies reporting a triple-digit percentage surge in net profit attributable to parent company shareholders. Against a backdrop of macroeconomic pressure coexisting with structural opportunities within the industry, the sector's overall profitability improved significantly. Some product categories received upward revisions to their outlooks from international investment banks, and increased policy support for strategic minerals like rare earths has also attracted significant market attention.
The latest data from the China Nonferrous Metals Industry Association shows that in the first quarter of 2026, the output of ten major nonferrous metals in China increased by 3.6% year-on-year, while fixed-asset investment in the industry grew by 10.7% year-on-year. More notably, major nonferrous metals enterprises achieved a total profit of 192.85 billion yuan, a substantial year-on-year increase of 110.7%. This data reflects that, despite increased volatility in the international commodities market, domestic nonferrous metals companies have achieved notable results in cost control, product mix optimization, and aligning with downstream demand, indicating the industry's entry into a phase of high-quality growth.
Several international institutions have recently raised their outlooks for nonferrous metals. Bank of America Securities is optimistic about the subsequent performance of aluminum and zinc, moving forward its target price achievement timeline for aluminum to the fourth quarter of 2026 and raising its zinc price forecast by 13%. Analysis suggests that the rigid demand for aluminum and zinc driven by global energy transition and infrastructure investment forms the core logic supporting their prices.
Looking ahead for the nonferrous metals sector, Oriental Securities believes that short-term fluctuations do not alter the positive medium to long-term trend. It suggests that the long-term bull market for precious metals is not over until the fundamental issue of US long-term debt is resolved. Additionally, incremental demand stemming from "de-globalization," combined with a trend of tightening mineral supply, provides mid-term fundamental support for price increases in industrial metals and strategic metals.
Huabao's Nonferrous Metals ETF (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, encompassing different phases of the cycle for precious metals, strategic metals, and industrial metals. This broad coverage allows for better capture of the sector's overall beta movements. Furthermore, this ETF is a margin trading security, making it an efficient tool for gaining exposure to the nonferrous metals sector.
As of the end of April, Huabao's Nonferrous Metals ETF (159876) had a latest size of 1.865 billion yuan, making it the largest ETF among the three products in the market tracking the same underlying index.
Risk Warning: Huabao's Nonferrous Metals ETF passively tracks the CSI Nonferrous Metals Index. The base date for this index is December 31, 2013, and it was published on July 13, 2015. The composition of the index's constituent stocks is adjusted according to its compilation rules; its backtested historical performance does not indicate its future performance. The constituent stocks mentioned herein are for illustrative purposes only; descriptions of individual stocks are not intended as investment advice in any form and do not represent the holdings or trading动向 of any fund managed by the fund manager. The fund manager assesses this fund's risk rating as R3-Medium Risk, suitable for investors with a Balanced (C3) or higher risk profile. Suitability matching opinions should be based on the selling institution's assessment. Any information appearing in this article is for reference only, and investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind for readers, and no responsibility is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks; a fund's past performance does not guarantee its future results, and the performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. Invest carefully in funds.
A MACD golden cross signal has formed, and these stocks are performing well.
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