The signal for an inflection point appears? Today (June 12), the non-ferrous metals sector led gains in the market. The on-market price of the largest ETF tracking the same underlying index, Huabao Fund's Metals ETF (159876), surged by up to 7%, currently up 5.26%, having recovered its 10-day and 20-day moving averages intraday and heading for a fourth consecutive daily gain.
Notably, as of this report, Huabao Fund's Metals ETF (159876) has received real-time net inflows of 25.2 million units! This reflects capital's optimism about the future performance of the non-ferrous metals sector, actively entering the market to accumulate positions.
Constituent stocks saw a wave of limit-up gains, with Tongling Nonferrous Metals Group Co., Ltd., China Molybdenum Co., Ltd., North Copper Co., Ltd., Jinduicheng Molybdenum Co., Ltd., and three other stocks hitting the daily limit-up, while many others touched the limit intraday. Heavyweight stock Zijin Mining Group Co., Ltd. rose over 6%, with Aluminum Corporation of China Limited and China Northern Rare Earth (Group) High-Tech Co., Ltd. gaining over 4%.
The surge in the non-ferrous metals sector today may be attributed to two main factors: First, recent frequent price increases in the minor metals sector. Second, expectations for a slowdown in the Federal Reserve's interest rate hikes have eased the pressure on the financial attributes of the non-ferrous metals sector. Concurrently, the easing of geopolitical tensions in the Middle East has gradually dissipated previous market concerns about suppressed long-term demand for certain non-ferrous metals.
It is worth noting that China's "Regulations for the Implementation of the Mineral Resources Law" will come into effect on June 15, officially listing 36 key minerals (tungsten, molybdenum, rare earths, lithium, cobalt, gallium, germanium) in the national strategic catalog. Minor metals are evolving from mere industrial raw materials into strategic assets in major power competition. In the process of global supply chain restructuring, companies controlling upstream key resources have gained unprecedented value premiums and pricing power.
Driven by emerging demand, the production of battery materials like nickel, cobalt, and lithium, copper and aluminum foils, high-end copper products, and rare and rare-earth metal materials is climbing. In the first four months of this year, the non-ferrous metals industry's profits increased by 117.8% year-on-year. Once labeled as a "cyclical industry" and "traditional sector," the non-ferrous metals industry, riding the wave of emerging industries like computing power, has achieved dual growth in output and efficiency, accelerating its intelligent and green transformation. This new industrial trend is not an isolated case but a vivid reflection of new quality productive forces empowering the real economy.
Looking ahead, industry insiders believe that benefiting from industrial structure optimization and sustained demand growth, the long-term performance of non-ferrous metals is promising. Based on an analysis of earnings trend models, the current valuation of the non-ferrous metals sector is reasonable, and it is expected to usher in a rebound opportunity. It is recommended to focus on its potential performance within the industrial chain and seize the investment window created by the previous oversold conditions.
Metals Sector Momentum Arrives, "Super Cycle" Appears Unstoppable
Huabao Fund's Metals ETF (159876) and its feeder funds (Class A: 017140, Class C: 017141) track an index comprehensively covering industries such as copper, aluminum, gold, rare earths, and lithium. Full-category coverage allows for better capture of the sector's beta performance. Furthermore, this ETF is eligible for margin trading and securities lending, serving as an efficient tool for a one-click allocation to the non-ferrous metals sector.
As of the end of May, the latest size of Huabao Fund's Metals ETF (159876) exceeds 1.5 billion yuan, making it the largest ETF among the three ETF products in the entire market tracking the same underlying index.
Risk Disclosure: The Huabao Metals ETF passively tracks the CSI Nonferrous Metals Index. The base date for this index is December 31, 2013, and it was released on July 13, 2015. The composition of the index's constituent stocks is adjusted according to its compilation rules, and its backtested historical performance does not indicate future index performance. The index constituents mentioned herein are for illustrative purposes only; descriptions of individual stocks do not constitute investment advice in any form nor represent the holdings information or trading trends of any fund managed by the fund manager. The fund manager assesses the risk rating of this fund as R3 - Medium Risk, suitable for Balanced (C3) and above investors. Please refer to the sales institution for suitability matching opinions. Any information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors must be responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice of any form to readers, nor is there any liability for direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund does not represent 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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