After four consecutive days of decline, the Nonferrous Metals ETF (159876) rebounded on March 17, with intraday gains reaching 1.18% and currently up 0.64%. Over 70% of its constituent stocks advanced, led by Tengyuan Cobalt and China Molybdenum, both rising more than 2%. Zijin Mining, Yunnan Tin, Huayu Mining, Chifeng Gold, and Northern Rare Earth also posted gains.
Although the nonferrous metals sector experienced adjustments in March, this likely reflects a partial release of accumulated valuation pressure. From a crowding perspective, the pullback has alleviated earlier overheated trading conditions, resulting in a healthier trading structure.
Over the past year, the nonferrous metals sector has surged 95.95%, outperforming sectors such as communications, comprehensive services, power equipment, and basic chemicals, ranking first among the 31 primary Shenwan industries.
Data source: CSI Index Company, statistical period: March 13, 2025, to March 13, 2026. The CSI Nonferrous Metals Index recorded the following annual returns over the past five full years: 2021, 35.89%; 2022, -19.22%; 2023, -10.43%; 2024, 2.96%; 2025, 91.67%. The index composition is adjusted periodically according to its rules, and past performance does not indicate future results.
Notably, the nonferrous metals sector is entering a new phase characterized by deep resonance across multiple factors, including macroeconomic trends, policy support, supply-demand dynamics, and geopolitical developments:
1. Macroeconomic factors: In recent years, global central banks have steadily increased gold reserves while reducing holdings of dollar-denominated assets. This shift reflects a deliberate effort to decrease reliance on any single sovereign currency. As more economies seek to diversify reserve assets, gold—with its inherent monetary attributes—and industrial raw materials like copper and aluminum are assuming roles beyond their traditional commodity functions.
2. Policy support: Under the "anti-internal competition" policy direction, industry competition is expected to stabilize gradually. Leading companies are no longer trapped in恶性 price wars, leading to improved profitability and cash flow quality.
3. Supply-demand and geopolitical dynamics: Against the backdrop of deglobalization and strengthened regional localization, the resource attributes of nonferrous metals have gained strategic importance related to national security. Critical mineral resources now involve not only commercial interests but also supply chain autonomy and control.
4. Earnings performance: Third-quarter 2025 results showed strong performance in the nonferrous metals sector, with nearly 90% of its 141 listed companies reporting profits. Twenty-three companies saw net profit attributable to shareholders grow by over 100%.
Looking ahead, can the nonferrous metals sector continue to rise? Industrial Securities believes the sector may regain momentum for upward movement. The current cycle is driven by overseas manufacturing restructuring and unconventional inventory building amid deglobalization, differing from traditional monetary cycles. This trend may persist longer in duration.
[Nonferrous Metals Momentum Arrives: "Super Cycle" Appears Unstoppable]
The Nonferrous Metals ETF Hua Bao (159876) and its feeder funds (Class A: 017140, Class C: 017141) track a comprehensive index covering copper, aluminum, gold, rare earths, lithium, and other sub-sectors. The index spans precious metals (safe-haven), strategic metals (growth), and industrial metals (recovery), capturing various cyclical trends. Full-category coverage enables better capture of the sector’s beta movements. Additionally, the ETF is a margin trading security, offering an efficient tool for exposure to the nonferrous metals sector.
As of the end of February, the Nonferrous Metals ETF Hua Bao (159876) had a size of 2.427 billion yuan, with average daily turnover exceeding 100 million yuan over the past month. Among the three ETFs tracking the same index, it leads in both size and liquidity.
Note: The ETF was previously known as the Nonferrous Metals Leaders ETF.
ETF fee information: Subscription and redemption agents may charge commissions of up to 0.5%. Trading fees for on-exchange transactions are subject to securities firms’ actual charges. The ETF does not levy sales service fees.
Feeder fund fee details: The Hua Bao CSI Nonferrous Metals ETF Feeder Fund (Class A) charges a subscription fee of 1,000 yuan per transaction for amounts of 2 million yuan or more, 0.6% for 1–2 million yuan, and 1% for amounts below 1 million. Redemption fees are 1.5% for holdings under seven days and 0% for seven days or more. No sales service fee is charged. The Class C feeder fund has no subscription fee, with redemption fees of 1.5% for holdings under seven days and 0% for seven days or more. A 0.3% sales service fee applies.
Risk disclosure: The Nonferrous Metals ETF Hua Bao passively tracks the CSI Nonferrous Metals Index, with a base date of December 31, 2013, and launch date of July 13, 2015. The index’s annual returns over the past five full years are: 2021, 35.89%; 2022, -19.22%; 2023, -10.43%; 2024, 2.96%; 2025, 91.67%. Index composition is adjusted periodically according to its rules, and past performance does not indicate future results. Constituent stocks are listed for reference only; individual stock descriptions are not investment advice and do not represent holdings or trading activities of the fund manager. The fund manager assesses the fund’s risk level as R3—medium risk, suitable for balanced (C3) and higher risk-tolerance investors. Suitability assessments are subject to sales institutions. All information provided is for reference only; investors are responsible for their investment decisions. Views, analyses, and forecasts do not constitute investment advice, and no liability is accepted for direct or indirect losses resulting from use of this content. Fund investments carry risks; past performance does not guarantee future results, and performance of other funds managed by the manager does not ensure this fund’s performance. Invest with caution.
MACD golden cross signals have formed, indicating positive momentum for these stocks.
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