Overnight, the three major U.S. stock indices experienced significant declines, with financials, real estate, and logistics stocks related to truck transportation plummeting. Gold and silver were also affected, with international gold prices falling sharply late in the session.
Influenced by these developments, the Nonferrous Metals ETF (159876), which aggregates leading companies in the nonferrous metals sector, saw its intraday price drop by over 2.4% today (February 13). It is currently down 1.97%, falling below its 5-day moving average. However, support remains at the 10-day moving average. Technically, this suggests short-term weakness, but the overall trend remains intact, indicating a normal retracement or consolidation phase.
Among the constituent stocks, Guocheng Mining led gains with an increase of over 2%, followed by Shengxin Lithium Energy, which rose more than 1%. Huayu Mining and Baiyin Nonferrous Metals also traded in positive territory. On the other hand, Yunnan Tin Industry and Xiamen Tungsten fell more than 4%, while China Rare Earth and Northern Rare Earth were among the top decliners, weighing on the index performance.
In related news, spot gold prices fell sharply overnight, dropping over 3% to below $5,000. As of the latest update, spot gold has rebounded 1%, not continuing yesterday's decline.
Regarding the current volatility and future direction of the gold market, CITIC Securities pointed out that the upward trend for gold is not yet over. Expectations around liquidity are currently the core driver of gold prices. Additionally, ongoing geopolitical conflicts provide periodic safe-haven support for gold. With continued liquidity releases, the Chinese and global economies are expected to experience a phased recovery within the next 6 to 12 months, boosting market demand. Combined with supply constraints, this could support metal prices after adjustments and potentially lead to new highs.
Looking ahead, can nonferrous metals continue to rise? China International Capital Corporation (CICC) believes that as short-term sentiment subsides and trading congestion significantly decreases, the rally in related resource stocks is not over. After a short-term adjustment, a medium-term upward trend is expected to resume. Huatai Securities noted that, from a long-term perspective, the macroeconomic logic for nonferrous metals remains sound. They continue to view the sector as a strategic investment and firmly optimistic about its future performance.
The Nonferrous Metals ETF HuaBao (159876) and its feeder funds (Class A: 017140, Class C: 017141) track a comprehensive index covering industries such as copper, aluminum, gold, rare earths, and lithium. This includes precious metals (for hedging), strategic metals (for growth), and industrial metals (for recovery) across different economic cycles. The broad coverage allows for better capture of the sector's beta movements. Furthermore, this ETF is a margin trading security, making it an efficient tool for gaining exposure to the nonferrous metals sector.
Investors are reminded that recent market volatility may be significant, and short-term price movements do not indicate future performance. It is essential to invest rationally based on individual financial situations and risk tolerance, with careful attention to position sizing and risk management.
Regarding ETF fees: Subscription and redemption agents may charge a commission of up to 0.5% when investors subscribe or redeem fund units. Intraday trading fees are subject to the rates set by securities firms. The ETF does not charge a sales service fee.
For the feeder funds: The HuaBao CSI Nonferrous Metals ETF Feeder Fund (Class A) has a subscription fee of 1% for amounts below 1 million yuan, 0.6% for 1 million to 2 million yuan, and a flat fee of 1,000 yuan for 2 million yuan and above. The redemption fee is 1.5% for holdings under 7 days and 0% for 7 days or more. No sales service fee is charged. The Class C feeder fund has no subscription fee, a redemption fee of 1.5% for holdings under 7 days and 0% for 7 days or more, and a sales service fee of 0.3%.
Risk Disclaimer: The HuaBao Nonferrous Metals ETF passively tracks the CSI Nonferrous Metals Index, which has a base date of December 31, 2013, and was launched on July 13, 2015. The index's performance over the past five full years is as follows: +35.89% in 2021, -19.22% in 2022, -10.43% in 2023, +2.96% in 2024, and +91.67% in 2025. The index's constituent stocks are adjusted according to its rules, and past performance does not guarantee future results. The mention of individual stocks is for illustrative purposes only and does not constitute investment advice or indicate the holdings or trading activities of the fund manager. The fund manager assesses this fund's risk level as R3-Medium Risk, suitable for balanced (C3) and higher risk-profile investors. Suitability assessments should be confirmed with the sales institution. All information provided is for reference only, and investors are responsible for their own investment decisions. The views, analyses, and forecasts presented do not constitute investment advice, and no liability is accepted for any direct or indirect losses resulting from the use of this content. Fund investments carry risks; past performance is not indicative of future results, and the performance of other funds managed by the fund manager does not guarantee this fund's future performance. Invest cautiously.
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