A new investment tool is being added to the nonferrous metals sector, as the HuaAn CSI Nonferrous Metals Mining Theme ETF (Subscription Code: 512943; Secondary Market Trading Code: 512940) is set to launch on January 26. It is understood that this product closely tracks the CSI Nonferrous Metals Mining Theme Index, focusing specifically on mining companies and providing a balanced inclusion of leading enterprises across various sub-sectors. Nonferrous metals refer to all metals and their alloys except for iron, chromium, and manganese. They are indispensable foundational materials and critical strategic resources for modern industry, high-tech development, and national defense. The CSI Nonferrous Metals Mining Theme Index selects 40 listed company securities from the nonferrous metals industry that possess proven reserves of nonferrous metal mineral resources as its index components, reflecting the overall performance of listed companies within the nonferrous metals mining theme. Reportedly, the core constituents of the CSI Nonferrous Metals Mining Theme Index are all leading domestic nonferrous metals enterprises, covering key resources such as copper, lithium, rare earths, aluminum, and gold. Compared to other nonferrous metals indices, the CSI Nonferrous Metals Mining Theme Index exclusively selects companies that own nonferrous metal mineral resource reserves, placing a sharper focus on the upstream mining segment and excluding companies engaged solely in smelting and processing. Furthermore, its sector allocation is relatively balanced, ensuring that the top three companies by market capitalization in each sub-sector are included. With a relatively small number of constituents, the index's weight is more concentrated in leading companies, potentially offering greater elasticity. From the perspective of the nonferrous metals industry chain, the revenue of mining companies is directly linked to the spot prices of metals like copper, lithium, and zinc, while their costs (mining, mineral processing) are relatively fixed. When metal prices rise, the vast majority of the incremental revenue directly translates into profit, with profit growth rates far exceeding the price increases, demonstrating significant "price elasticity." In contrast, midstream smelters earn "processing fees," resulting in relatively stable but less elastic profits. Downstream processors, meanwhile, face a dual squeeze from rising raw material costs and challenges in fully passing these costs onto product prices. Additionally, mineral resources possess inherent exclusivity and scarcity; a high-quality mine is a non-renewable, hard-to-replicate heavy asset. Owning substantial resource reserves equates to possessing long-term mining rights and a guarantee of future cash flows, creating a wider and deeper economic moat. Over the past year, the performance of the nonferrous metals industry has been remarkably strong. HuaAn Fund's Index and Quantitative Investment Department stated that under the "triple forces" of an improving macroeconomic environment, tightening industry supply and demand, and an elevated strategic importance, the long-term investment logic for the nonferrous metals mining sector is being reinforced. The HuaAn CSI Nonferrous Metals Mining Theme ETF aims to provide investors with a convenient and transparent tool to gain overall exposure to a basket of A-share leading nonferrous metals mining companies. The product is slated to be managed by Xu Zhiyan, Assistant General Manager of HuaAn Fund and Chief Index Investment Officer, who brings 22 years of experience in securities and funds, including 19 years as a fund manager. HuaAn Fund's Index and Quantitative team will provide comprehensive support throughout. As one of the influential index fund investment teams in the industry, HuaAn Fund's Index and Quantitative team launched and manages the country's first index fund, accumulating over 23 years of experience in index product management. HuaAn Fund's public index funds cover domestic A-shares, bonds, commodities, as well as Hong Kong stocks, U.S. stocks, and other QDII funds, offering investors diversified asset allocation tools. Fund Fee Explanation: The fund manager will not charge subscription fees for offline cash subscriptions or offline stock subscriptions. When investors subscribe for or redeem fund units, the subscription agent may charge a commission of up to 0.3%, and the redemption agent may charge a commission of up to 0.5%, which includes relevant fees charged by the stock exchange and registration institutions. Risk Warning: This fund is an equity fund, representing a fund category with relatively high risk and high expected returns, primarily investing in constituent securities of the target index and its alternative components. The expected returns and risks of this fund are higher than those of money market funds, bond funds, and hybrid funds, exhibiting risk-return characteristics similar to its target index. The fund management company does not guarantee that the fund will necessarily be profitable, nor does it guarantee a minimum return. The past performance of the fund is not indicative of its future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. Fund product returns are subject to volatility risks; investment requires caution. Please read the fund's contract, prospectus, and other legal documents carefully for details.
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