The nonferrous metals sector staged a powerful rebound on February 25, with the sector-focused Metals ETF (159876) surging up to 5.05% during trading. The ETF currently maintains a 4.45% gain, having reclaimed its 20-day moving average and now trading above all key moving averages. As of this report, the fund recorded net subscriptions of 4.8 million units, following a net inflow of 7.01 million yuan the previous day.
Minor metals stocks led the charge with a wave of limit-up gains. Huaxi Nonferrous Metals, Yunnan Germanium, Anning股份, Yunnan Tin Industry Group, China Northern Rare Earth(Group)High-Tech Co.,Ltd., and Zhongxi Nonferrous all hit the 10% daily upside limit. Additionally, Chihong Zinc and Germanium surged by the limit, while Hanrui Cobalt advanced over 16%.
In terms of capital flows, the nonferrous metals sector attracted net main fund inflows exceeding 21.5 billion yuan, ranking first among the 31 Shenwan primary industries. China Northern Rare Earth(Group)High-Tech Co.,Ltd. led the pack by drawing 5.3 billion yuan, topping the A-share capital attraction chart.
Market catalysts include broad-based price surges in minor metals. Black tungsten concentrate prices jumped 47.15%, ammonium paratungstate rose 45.93%, and praseodymium-neodymium oxide gained over 20%. Simultaneously, Indonesia announced significant nickel ore production cuts, with projected reductions of 110-120 million tons compared to 2025 levels.
BOC Securities analysis indicates that as markets enter the second phase of the bull cycle—earnings-driven growth—strengthened reflation narratives under "anti-involution" policies and domestic demand expansion could highlight nonferrous metals' cyclical characteristics. Financial attributes and industrial trends may create reevaluation opportunities for the sector, potentially driving both earnings and valuation multiples higher in 2026.
The Huabao Metals ETF (159876) and its feeder funds (Class A: 017140, Class C: 017141) provide comprehensive exposure to copper, aluminum, gold, rare earths, lithium and other sub-sectors. The index covers precious metals (hedging), strategic metals (growth) and industrial metals (recovery) across different cycle phases, offering diversified beta exposure. As a margin trading security, the ETF serves as an efficient tool for sector allocation.
Investors should note recent market volatility and recognize that short-term performance doesn't guarantee future results. Position sizing and risk management should align with individual capital conditions and risk tolerance.
ETF fee structure: Subscription/redemption agents may charge up to 0.5% commission, while trading fees follow securities company standards. The ETF charges no sales service fees.
Feeder fund fees: Class A shares carry subscription fees of 1,000 RMB per transaction for amounts ≥2 million RMB, 0.6% for 1-2 million RMB, and 1% below 1 million RMB. Redemption fees are 1.5% for holdings under 7 days and 0% thereafter, with no sales service fees. Class C shares charge no subscription fees, with redemption fees of 1.5% (<7 days) and 0% (≥7 days), plus 0.3% annual sales service fees.
Risk disclosure: The ETF tracks the CSI Nonferrous Metals Index (base date: 2013.12.31, launch date: 2015.7.13). Historical annual returns: +35.89% (2021), -19.22% (2022), -10.43% (2023), +2.96% (2024), +91.67% (2025). Index components adjust per compilation rules, and past performance doesn't indicate future results. Constituent information is for reference only and doesn't constitute investment advice or reflect fund holdings. The fund carries an R3-medium risk rating suitable for balanced (C3) or higher risk-profile investors. Investment decisions remain the responsibility of investors, and no content herein constitutes investment advice or liability for losses.
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