The Nonferrous Metals ETF Huabao (159876), which aggregates leading companies in the nonferrous metals sector, saw its on-exchange price rise by 0.26% today (February 4th), following a substantial surge of 6.4% yesterday, demonstrating the resilience of the sector. Notably, the ETF experienced a net subscription of 15 million units throughout the trading day, accumulating a total influx of 1.3 billion yuan over the preceding 20 days.
Among the constituent stocks, Jinduicheng Molybdenum Co., Ltd. led the gains with an increase of over 4%, followed by Xingye Silver & Tin rising more than 3%. Companies such as Huayou Cobalt, GAONA Aero Material, Shenhuo Group, and Baiyin Nonferrous also posted advances. Regarding heavyweight constituents, China Molybdenum Co. Ltd. and Aluminum Corporation of China Limited (Chalco) both rose over 2%, while Zijin Mining Group and China Northern Rare Earth Group closed in positive territory.
Significantly, spot gold prices climbed back above $5,000 today (February 4th), following a sharp rebound of 6% for international gold prices yesterday (February 3rd), marking the largest single-day percentage gain since 2009. What factors are driving the resurgence in gold prices? Focus lies on two primary aspects: On one hand, geopolitical tensions between the US and Iran showed signs of escalation, with Iranian speedboats approaching a US oil tanker in the Strait of Hormuz and threatening to board, while US military fighter jets shot down an Iranian drone approaching its aircraft carrier in the Arabian Sea. Such geopolitical events heighten risk aversion, providing upward support for gold prices, with the concurrent rise in international crude oil prices also reflecting a reaction to these events. On the other hand, Federal Reserve Governor Stephen Milan indicated that interest rate cuts "exceeding 100 basis points" would be necessary this year and expressed anticipation for the potential performance of the incoming Chair, Walsh. These remarks helped recalibrate market expectations regarding future monetary easing policies, further aiding the rebound in gold prices.
Tianfeng Securities believes that gold may enter a period of wide fluctuations in the short term, but still has the potential to resume its upward trend within the year. Given the current critical juncture in global competitive dynamics, the narrative supporting gold is unlikely to conclude. The firm anticipates that long-term allocation demand for gold from global central banks will persist, providing fundamental support for gold prices. In the near term, gold might experience consolidation, with cautious sentiment but underlying support. Once the sentiment among short-term speculators subsides, the primary upward trend could re-emerge.* Guosheng Securities posits that a combination of supply-demand mismatches, macroeconomic easing, and industrial upgrading is creating a resonance effect, suggesting the "nonferrous metals feast" is not a short-term pulse but that high profitability could be sustained for 3-5 years.* While the market is generally bullish on the nonferrous metals sector's outlook, Orient Jincheng points out the need for caution in the short term regarding risks associated with profit-taking by speculative funds, which could lead to increased volatility. Huatai Securities recommends a moderate allocation to the nonferrous metals sector*, suggesting a weighting of 10%-20% within an investment portfolio to potentially benefit from the sector's upside while maintaining risk diversification.
[The Nonferrous Metals Trend is Here, A 'Super Cycle' Appears Inevitable] The Nonferrous Metals ETF Huabao (159876) and its feeder fund (Class A: 017140, Class C: 017141) track a benchmark index that comprehensively covers industries including copper, aluminum, gold, rare earths, and lithium, encompassing various cycles such as precious metals (safe-haven), strategic metals (growth), and industrial metals (recovery). This full-category coverage allows for better capture of the sector's beta movements. Furthermore, this ETF is a margin trading and securities lending target, serving as an efficient tool for a one-click allocation to the nonferrous metals sector.
*Institutional views referenced from: ① Tianfeng Securities report "Overseas Market Commentary: Perspectives After Gold's 'Epic Fluctuations'" released February 1; ② Guosheng Securities report "Scarcity Creates Value, Momentum Drives Price – Nonferrous Metals Investment Strategy for 2026" released January 5; ③ Huatai Securities report "Mid-Scenario景气 and Tactical Allocation Monthly Report – What are the Drivers for the Initial Signs of an Inflection Point in景气?" released January 8. Reminder: Recent market volatility may be significant; short-term gains or losses are not indicative of future performance. Investors must make rational investment decisions based on their own financial 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%. On-exchange trading fees are subject to the rates actually charged by securities firms. The ETF does not charge a sales service fee. Feeder Fund Fee Information: For the Huabao CSI Nonferrous Metals ETF feeder fund (Class A), the subscription fee rate is 1,000 RMB per subscription for amounts of 2 million RMB (inclusive) or above, 0.6% for amounts between 1 million RMB (inclusive) and 2 million RMB, and 1% for amounts below 1 million RMB. The redemption fee rate is 1.5% for holding periods under 7 days, and 0% for holding periods of 7 days (inclusive) or more. No sales service fee is charged. For the Huabao CSI Nonferrous Metals ETF feeder fund (Class C), no subscription fee is charged. The redemption fee rate is 1.5% for holding periods under 7 days, and 0% for holding periods of 7 days (inclusive) or more. The sales service fee is 0.3%. Risk Disclosure: The Nonferrous Metals ETF Huabao 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 past five complete calendar years is as follows: 2021, +35.89%; 2022, -19.22%; 2023, -10.43%; 2024, +2.96%; 2025, +91.67%. The index's constituent stocks are adjusted according to its compilation rules, and its past performance is not indicative of future results. The mention of index constituents herein is for illustrative purposes only; descriptions of individual stocks do not constitute investment advice in any form nor represent the holdings or trading动向 of any fund managed by the management company. The fund manager assesses the risk rating of this fund as R3-Medium Risk, suitable for investors with a Balanced (C3) or higher risk profile. Suitability matching opinions are subject to 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 solely responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts herein do not constitute investment advice to readers and shall not be held liable for any direct or indirect losses resulting from the use of this content. Fund investment carries risks; the past performance of a fund is not indicative of its future results. 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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