Copper prices have once again taken center stage in the financial markets this September. In early September, the main Shanghai copper contract broke through the 110,000 yuan per tonne threshold, while LME copper surpassed $14,800 per tonne intraday, setting a new historical record before both shifted into high-level consolidation. While commodity prices don't simply translate to stock prices, copper's strength has nevertheless provided fundamental support for the A-share non-ferrous metals sector. Wind data shows that as of September 11, the CSI Industrial Non-ferrous Metals Theme Index (H11059.CSI) has risen 9.06% since its July 20 low. Past index performance does not guarantee future results and does not equal actual product returns; investment carries risks.
As technology stocks lose their dominance, capital is searching for undervalued opportunities, and non-ferrous metals have emerged as one of the overlooked bargains in this rotation. The newly launched Great Wall CSI Industrial Non-ferrous Metals Index Fund (Class A: 028478; Class C: 028479) has arrived right at this opportune window. But how solid is the logic behind this rally in the metals sector?
As a broad sector, non-ferrous metals primarily encompass five major categories based on market data and Shenwan secondary industry classifications. After clarifying the sector's scope, let's examine the rationale behind its strength. The underlying logic of this rally begins with changes in demand for non-ferrous metals. In the past, non-ferrous metals were labeled as traditional cyclical commodities—rising with economic growth and falling during downturns. However, emerging industries such as AI chips and data centers now heavily depend on copper, aluminum, and rare earths as core building blocks, elevating non-ferrous metals to the status of strategic technology assets. As demand from emerging sectors continues to surge, the sector's long-term prosperity now has fresh, solid support.
With demand rising, can supply keep pace? That appears challenging. Take copper mining as an example: Chile, the world's largest copper producer, experienced extreme weather that reduced copper export value by 14% month-on-month in August, marking the lowest level since July 2025. Additionally, the Chilean Copper Commission projects that global copper mine production growth will be only 0.2% in 2026. Insufficient capital expenditure, declining ore grades at older mines, and slow ramp-up of new projects mean the supply gap at the mining stage cannot be closed in the short term. This supply-demand shortfall may be the core support for this rally.
Broadening the perspective to the pricing environment adds another layer of logic. Non-ferrous metals are not priced solely by supply and demand variables; geopolitical factors and resource security are also re-evaluating their value. Currently, critical metals including copper, rare earths, tungsten, and molybdenum are being incorporated into national strategic reserve narratives and geopolitical competition. Export policies of supplier nations, tax rates in resource-rich countries, and quota arrangements can all become price variables. Simultaneously, with global manufacturing recovery and renewed power grid investment, copper and aluminum also have fundamental demand support. Strategic attributes combined with recovery demand lift the price center, which translates into profits on corporate balance sheets—data shows that China's large-scale non-ferrous metal enterprises achieved total profits of 418.39 billion yuan in the first half of this year, up 94.0% year-on-year. These figures are for reference only and do not represent future performance; markets carry risks and investment requires caution.
In summary, industrial non-ferrous metals currently appear to be at a distinctive and attractive stage—demand has largely turned the corner while supply has yet to catch up. This is the core logic worth attention for the current industrial metals rally. When considering how to gain exposure to industrial metals, the index vehicle deserves careful examination. The Great Wall CSI Industrial Non-ferrous Metals Index Fund (Class A: 028478; Class C: 028479) is currently on offer, tracking the CSI Industrial Non-ferrous Metals Theme Index (H11059.CSI), with several features worth noting.
The most apparent attribute is purity. The index holds only 30 constituent stocks, primarily focused on copper, aluminum, lead-zinc, and rare earths among industrial metals, deeply tied to manufacturing vitality and technology infrastructure demand. Its industrial attributes carry higher purity, potentially offering more direct mapping to manufacturing prosperity, power grid construction, equipment investment, and resource supply constraints.
In terms of individual stocks, weights lean toward industry leaders. Wind data indicates that the top ten weighted stocks collectively account for approximately 53% of the index, encompassing many globally diversified mining entities. These companies possess substantial scale and abundant resource reserves. The resource industry places great emphasis on balance sheet strength, mineral assets, and cross-regional operational capabilities, so this leadership concentration reflects not merely market capitalization style but also stronger operational resilience.
More critically, the momentum for earnings recovery is robust. According to forecast data, the index constituents' expected attributable net profit for 2026 reaches 275.017 billion yuan, with projected growth estimated at 78.21%. These figures are for reference only, do not constitute investment advice, and forecast data does not represent actual future performance.
Taking a longer historical view, the non-ferrous metals story extends far beyond price fluctuations. Behind it lies a confluence of global monetary environment reshaping, expanding foundational demand from AI and new energy emerging industries, and the restructuring of global resource patterns and supply chain security. Returning to the present, copper prices hitting new highs, the metals sector catching up, and capital rotating from high to low positions—these signals combined may represent a configuration window worth attention. The Great Wall CSI Industrial Non-ferrous Metals Index Fund (Class A: 028478; Class C: 028479) is currently in its offering period. If you recognize the long-term logic of industrial metals, this product merits consideration—after all, when cycles and growth resonate together, choosing the right direction matters more than frequent market timing.
Product fees: For Class A shares, subscription fees are 0.3% for amounts under 1 million yuan, 0.2% for 1 million to 3 million yuan, 0.1% for 3 million to 5 million yuan, and 1,000 yuan per transaction for 5 million yuan or above. Class A shares purchased directly through the distributor waive subscription fees. Class C shares carry no subscription fees. Redemption fees for Classes A/C based on holding period: for individual investors, 1.5% for holdings under 7 days and 0% for 7 days or more; for institutional investors, 1.5% under 7 days, 1.0% from 7 to 30 days, 0.5% from 30 to 180 days, and 0% for 180 days or more. The fund's management fee is 0.5% per annum, custody fee is 0.1% per annum, and Class C sales service fee is 0.2% per annum. Specific applicable sales fees are subject to the fund's legal documents and sales institution business rules as announced by the manager.
Risk disclosure: Funds carry risks; investment requires caution. Investors should fully understand the fund's risk characteristics, heed the suitability opinions of sales institutions, and invest prudently based on their own risk tolerance after carefully reading the Fund Contract, Prospectus, and other disclosure documents. The fund is rated R4-medium-to-high risk by the manager, suitable for C4-aggressive and above risk preference clients; specific risk ratings are subject to sales institutions. The fund manager promises to manage and use fund assets with integrity, diligence, and prudence but does not guarantee profitability or minimum returns. China's fund operations have a relatively short history and cannot reflect all stages of stock and bond market development. Past fund performance and net value levels do not predict future performance, and other funds managed by the manager do not constitute a guarantee of this fund's performance. Investment risks arising from fund operations and net value changes are borne by investors themselves. This investment perspective reflects current views, may change in the future, serves as reference only, and does not constitute substantive investment advice or the ultimate investment view of Great Wall Fund. The company bears no responsibility for investment actions based on this article. The index's constituent stocks are primarily concentrated in industrial non-ferrous metals companies, subject to risks from policy changes and industry prosperity fluctuations. This fund is an equity index fund that closely tracks the underlying index to minimize deviation and tracking error. The product is issued and managed by Great Wall Fund Management Co., Ltd., which operates and independently bears legal responsibility; sales institutions do not bear product investment or redemption responsibilities. This material is for promotional purposes only and does not serve as a legal document.
Comments