Chengxin Lithium Secures Major Order! $22 Billion Deal Locks in Premium Client! Three Key Drivers Propel Nonferrous Metals ETF (159876) Up 2% with Strong Momentum!

Today (November 20), the nonferrous metals sector continued to lead gains in the market. The Nonferrous Metals Leaders ETF (159876), which aggregates industry leaders, rose 2.09% intraday, trading above all moving averages with strong upward momentum.

According to Shenzhen Stock Exchange data, the ETF attracted a net inflow of 146 million yuan over the past five trading days, reflecting bullish sentiment and active capital inflows.

Among constituents, Chengxin Lithium Group Co., Ltd. (002240) and Guocheng Mining surged over 8%, while Huaxi Nonferrous Metals and Sinomine Resource Group gained more than 5%. Yahua Group and Yongxing Materials also posted significant gains. Key weighted stocks such as Ganfeng Lithium rose over 3%, China Rare Earth advanced more than 2%, and Northern Rare Earth climbed over 1%. Zijin Mining and CMOC Group also traded higher.

**Major Catalyst: Chengxin Lithium’s Mega Deal** On November 18, lithium giant Chengxin Lithium announced a framework agreement with Huayou Holding Group, committing to supply 221,400 tons of lithium products from 2026 to 2030. Based on current futures prices, the deal is valued at approximately 21.994 billion yuan ($3.1 billion).

Ganfeng Lithium previously forecasted that if demand grows over 30% by 2026, the lithium carbonate market could face a supply-demand imbalance, potentially pushing prices beyond 150,000 yuan/ton or even 200,000 yuan/ton, boosting market confidence. Zhongtai Securities noted that upward revisions in energy storage demand expectations could drive strong performance in 2025.

**Three Core Drivers Behind the Rally** 1. **Accelerating Energy Transition**: Explosive growth in global solar, wind, energy storage, and EV industries has fueled surging demand for copper, lithium, and cobalt. 2. **Supply Chain Security Strategies**: Countries are strengthening strategic reserves of critical minerals, with China’s role as the top producer and consumer further solidifying. 3. **Tech Innovation**: Breakthroughs in new materials are expanding nonferrous metals’ applications into high-end manufacturing, semiconductors, and aerospace.

**Outlook: Bullish Sentiment Prevails** Institutions widely expect the nonferrous metals sector to sustain its bull run in H2 2025. Zhongtai Securities anticipates a broad rally, while CITIC Securities highlights three key themes: - Industrial metals like copper and aluminum (supply-constrained, demand-rebounding). - Energy metals like lithium and cobalt (driven by energy storage and EV batteries). - Strategic assets like gold and rare earths.

**ETF Strategy for Diversified Exposure** Given divergent trends across metals, the Nonferrous Metals Leaders ETF (159876) offers diversified exposure to copper, aluminum, gold, rare earths, and lithium, mitigating single-commodity risks. Its feeder fund (Class A: 017140; Class C: 017141) provides additional access.

**Risk Disclosure**: The ETF tracks the CSI Nonferrous Metals Index (base date: Dec 31, 2013; launched: Jul 13, 2015). Past performance (2020: +35.84%; 2021: +35.89%; 2022: -19.22%; 2023: -10.43%; 2024: +2.96%) is not indicative of future results. Constituent data is for reference only and does not constitute investment advice. Fund risk rating: R3 (moderate), suitable for balanced (C3) or higher-risk investors. Investors should assess suitability per sales channels.

MACD golden cross signals indicate bullish momentum for select stocks.