Likely driven by a significant policy announcement from Shanghai, the Huabao Nonferrous Metals ETF (159876), which aggregates leading companies in the nonferrous metals industry, experienced a strong upward surge today (January 21). Its on-market price rose over 2.1% during the session and is currently up 1.77%, aiming for a third consecutive positive daily close and sitting just a step away from its previous post-listing high of 1.160.
Accompanying the fervent market activity, capital is actively flowing in to establish positions! As of this writing, the Huabao Nonferrous Metals ETF (159876) saw real-time net subscriptions of 21.6 million units. Extending the view, it has attracted capital inflows for 10 consecutive days, amassing a total of 635 million yuan!
Regarding constituent stocks, three companies hit the daily limit-up: Baiyin Nonferrous Group Co.,Ltd., Hunan Silver, and Shenzhen Lithium. Guocheng Mining rose over 8%, Sinomine Resource Group gained more than 7%, while Yongxing Materials, China Rare Earths & Nonferrous Metals, and other stocks followed with significant increases.
On the news front, Shanghai issued a document promoting the enhancement of the nonferrous metals bulk commodity sector. On January 20, Shanghai released the "Action Plan for Strengthening Futures-Spot Linkage to Elevate the Tier of Nonferrous Metals Bulk Commodities," aiming to bolster interconnected development between markets, jointly improve Shanghai's resource allocation capacity and global pricing influence in nonferrous metals bulk commodities, and support the construction of Shanghai's "Five Centers."
Yide Futures pointed out that the supply-demand dynamic, characterized by constrained supply growth and improving demand, forms the core foundation for the medium-to-long-term strength of the nonferrous metals sector. Looking at specific segments, aluminum, with its clear supply constraints and limited adjustment room, demonstrates greater resilience during sector pullbacks and offers stronger certainty for long-term returns. For metals like tin and copper, tin's resource scarcity and high demand growth attributes are prominent, while copper, as the sector's "bellwether," has a clear medium-to-long-term outlook of tight supply-demand balance, offering high elasticity potential after corrections. Nickel requires close monitoring of policy developments in producing regions; its price floor support is evident, and valuations are expected to gradually recover following inventory drawdowns and policy implementation.
China Galaxy Securities believes that escalating global geopolitical conflicts may trigger a reshaping of the global metals supply chain, which could catalyze a reassessment of the demand and value of critical strategic metal mineral resources. The logic supporting price increases for key strategic nonferrous metals like copper, tungsten, molybdenum, cobalt, and rare earth magnetic materials is expected to persist.
Notably, as of January 20, the Huabao Nonferrous Metals ETF (159876) reached a latest size of 1.665 billion yuan, setting a new historical high. Among the three ETFs tracking the CSI Nonferrous Metals Index in the market, it is the largest by size.
[The Nonferrous Metals Trend is Here, the 'Super Cycle' is Unstoppable] The Huabao Nonferrous Metals ETF (159876) and its feeder fund (Class A: 017140, Class C: 017141) track a benchmark index that comprehensively covers sectors including copper, aluminum, gold, rare earths, lithium, and more. It encompasses different phases of the economic cycle represented by precious metals (safe-haven), strategic metals (growth), and industrial metals (recovery). This full-category coverage allows for better capture of the broader sector's beta movements.
Risk Warning: The Huabao Nonferrous Metals ETF and its feeder fund passively track the CSI Nonferrous Metals Index. The base date for this index is December 31, 2013, and it was published on July 13, 2015. The index's performance over the last five complete years is as follows: 2020, +35.84%; 2021, +35.89%; 2022, -19.22%; 2023, -10.43%; 2024, +2.96%. The composition of the index's constituents is adjusted according to its compilation rules; its past historical performance does not indicate future performance. The mention of index constituents herein is for display purposes only; descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading动向 of any fund managed by the management company. The fund manager assesses this fund's risk level as R3-Medium Risk, suitable for investors with a Balanced (C3) or higher risk profile. Suitability matching opinions should be based on the sales institution. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or predictions in this article do not constitute investment advice of any kind to readers, and no liability is accepted for any direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund does not indicate its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment should be undertaken with caution.
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