Today (January 6th), the nonferrous metals sector led the gains in the market, with the popular sector ETF—Nonferrous Metals ETF Huabao (159876)—seeing an intraday increase of up to 3.03%. It is currently up 2.45%, once again setting a new historical high!
Notably, as of the time of writing, Nonferrous Metals ETF Huabao (159876) has received real-time net subscriptions of 32.4 million units. This follows four consecutive days of net capital inflows, totaling 56.48 million yuan, reflecting strong investor confidence in the future performance of the "nonferrous metals bull market" and active accumulation of positions. Data shows that as of January 5th, the latest size of Nonferrous Metals ETF Huabao (159876) reached 879 million yuan, also hitting a new record high.
In terms of constituent stocks, Huayou Cobalt led the gains with an increase of over 7%. Companies like Sinomine Resource Group, Hunan Rare Earth Metal Material Research Institute, Shenhuo Coal & Power, Yunnan Tin Company, and Aluminum Corporation of China (Chalco) rose by more than 5%. Sinomine Resource Group, Zijin Mining Group, and Tianshan Aluminum Group also saw significant gains, climbing over 4%.
On the news front, metal prices such as copper and gold are expected to remain at relatively high levels in 2025. Leading nonferrous metals companies, including Chifeng Gold, Huayou Cobalt, and Zijin Mining Group, have released preliminary earnings forecasts indicating profit growth. Zijin Mining Group estimates its net profit attributable to shareholders for 2025 will be between 51 billion and 52 billion yuan, a year-on-year increase of 59% to 62%.
CITIC Futures analysis points out that amid intensified geopolitical conflicts and continued weakness in US manufacturing PMI data, precious metal prices have been trending upwards intraday. Numerous short-term disruptive factors persist, such as ongoing geopolitical tensions in regions like Russia-Ukraine and US-Venezuela, the impending rebalancing of the Bloomberg Commodity Index, the upcoming nomination of a new Federal Reserve Chair, and the pending release of US non-farm payrolls and inflation data for December. For the short term, maintaining a strategy of buying on adjustments is recommended for gold.
Looking ahead, there is a broad consensus among institutions that the nonferrous metals sector is poised for a sustained bull run. China International Capital Corporation (CICC) notes that the nonferrous metals industry could experience a bull market in 2026 driven by synchronized improvements in monetary policy, demand, and supply. Zhongtai Securities is optimistic about a comprehensive bull market for nonferrous metals, while China Securities Co., Ltd. (CSC) believes the current bull market has potential for further advancement.
[The Nonferrous Metals Trend is Here, An "Super Cycle" is Unstoppable] Different nonferrous metals exhibit varying levels of market activity, cycles, and driving factors, making divergence inevitable. For those bullish on the nonferrous metals sector, a relatively straightforward approach to capture the broader beta of the entire sector is through comprehensive exposure. Nonferrous Metals ETF Huabao (159876) and its linked fund (Class A: 017140, Class C: 017141), which encompass leading companies in the industry, track an index that provides comprehensive coverage of sectors like copper, aluminum, gold, rare earths, and lithium. Compared to investing in a single metal sector, this offers risk diversification and is suitable as a component within an investment portfolio.
Risk Warning: The Nonferrous Metals Leaders ETF and its linked 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 past 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, and its past performance is not indicative of its future results. The mention of individual index constituents in this article is for illustrative purposes only; descriptions of individual stocks are not intended as any form of investment advice and do not represent the holdings or trading动向 of any fund managed by the fund manager. The fund manager assesses the risk level of this fund 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, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are solely responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice of any kind for readers, and no responsibility is accepted for any direct or indirect losses resulting from the use of this article's content. Fund investment carries risks. The past performance of a fund is not indicative of its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest in funds with caution.
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