Today (February 4th), spot gold reclaimed the $5000 per ounce level, with technical indicators suggesting a successful test of the 60-day moving average, significantly reducing the risk of further declines. Yesterday (February 3rd), Shanghai copper's main contract surged 3.49%, with leading copper companies also posting impressive gains. Zijin Mining Group rose over 6%, Tongling Nonferrous Metals Group climbed more than 5%, and the Huabao Nonferrous Metals ETF (159876), which holds leading companies in the sector, staged a strong rebound, with its intraday price soaring over 6.7% before closing up 6.4%, decisively reclaiming the 20-day moving average.
The rally was primarily catalyzed by two key domestic and international developments: Firstly, domestically, the China Nonferrous Metals Industry Association stated it is researching the inclusion of copper concentrate, which has large trade volumes and high liquidity, into national reserves. Huayuan Securities noted that medium to long-term, insufficient capital expenditure in copper mines and frequent supply-side disruptions could shift the copper supply-demand balance from tight to a deficit. Furthermore, against a backdrop of "anti-involution" policies and the Federal Reserve's ongoing interest rate cut cycle, copper prices are expected to break out and trend higher. Secondly, internationally, former President Trump is anticipated to launch a critical minerals reserve plan with initial funding of $12 billion. This initiative aims to shield U.S. manufacturers from supply chain shocks and significantly reduce the country's reliance on foreign sources for critical metals. Market analysts suggest that China's potential stockpiling volume could reach 70-80 million metric tons, aligning with the safety inventory levels required by manufacturing nations in the current deglobalization context.
Guosheng Securities believes that a combination of supply-demand mismatches, accommodative macroeconomic policies, and industrial upgrading will fuel a "metals feast" that is not a short-term spike, with high profitability likely to persist for 3-5 years. While market sentiment is broadly bullish on nonferrous metals' prospects, Dongfang Jincheng cautions that short-term risks include profit-taking by speculative funds, which could increase volatility. Huatai Securities recommends a moderate allocation to the nonferrous metals sector—around 10%-20% of a fund portfolio—to capture potential upside while maintaining risk diversification.
[The Metals Boom Has Arrived, A "Super Cycle" Appears Unstoppable] The Huabao Nonferrous Metals ETF (159876) and its feeder fund (Class A: 017140, Class C: 017141) track an index that comprehensively covers sectors like copper, aluminum, gold, rare earths, and lithium, spanning different cycles such as precious metals (for hedging), strategic metals (for growth), and industrial metals (for recovery). This broad coverage allows for better capture of the sector's overall beta movements. Additionally, this ETF is a margin trading security, making it an efficient tool for a one-stop allocation to the nonferrous metals sector.
Reminder: Recent market volatility may be elevated. Short-term price movements do not indicate future performance. Investors must make rational investment decisions based on their own capital situation and risk tolerance, paying close attention to position sizing and risk management. ETF Fee Information: When subscribing for or redeeming fund units, subscription/redemption agents may charge a commission of up to 0.5%. Trading fees for on-exchange transactions are subject to the rates charged by the securities firm. The ETF does not charge a service fee. Feeder Fund Fee Information: For the Huabao CSI Nonferrous Metals ETF Feeder Fund (Class A), the subscription fee is 1000 RMB per transaction for amounts of 2 million RMB or more, 0.6% for amounts between 1 million RMB (inclusive) and 2 million RMB, and 1% for amounts below 1 million RMB. The redemption fee is 1.5% for holding periods under 7 days, and 0% for holding periods of 7 days or more. No service fee is charged. The Huabao CSI Nonferrous Metals ETF Feeder Fund (Class C) charges no subscription fee. The redemption fee is 1.5% for holding periods under 7 days, and 0% for holding periods of 7 days or more. The service fee is 0.3%. Risk Disclosure: The Huabao Nonferrous Metals ETF and its feeder fund passively track the CSI Nonferrous Metals Index. The index's base date is December 31, 2013, and it was launched on July 13, 2015. The index's performance over the past five full calendar years is as follows: 2021, +35.89%; 2022, -19.22%; 2023, -10.43%; 2024, +2.96%; 2025, +91.67%. The index's constituents are adjusted periodically according to its methodology. Past index performance does not guarantee future results. The mention of index constituents herein is for illustrative purposes only; individual stock descriptions are not investment advice of any form and do not represent the holdings or trading activities of any fund managed by the fund manager. The fund manager assesses this fund's risk rating as R3-Medium Risk, suitable for Balanced (C3) and higher risk-profile investors. Suitability assessments are ultimately determined by the selling institution. All information appearing in this article (including but not limited to stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are solely responsible for their independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any kind for readers, and no liability is accepted for any direct or indirect losses resulting from the use of this content. Fund investing carries risks. A fund's past performance does not indicate its future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest cautiously.
A MACD golden cross signal has formed, and these stocks are performing well!
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