The non-ferrous metals sector led the entire market on Friday, August 21, with main capital inflows surpassing 13.1 billion yuan for the day, ranking second among all 31 Shenwan primary industry sectors. Hunan Silver and Silver Corp both hit their daily price limits as constituent stocks of the Nonferrous Metals ETF HuaBao (159876), while Guocheng Mining climbed over 8%, Chifeng Gold advanced more than 7%, and Shengxin Lithium Energy gained over 6%. Among heavyweight names, Zijin Mining and Aluminum Corporation of China both rose more than 2%, while CMOC Group added over 1%.
On the macro front, as long-term US Treasury yields moved higher again, US Treasury Secretary Bessent stated on the evening of August 20 that the maximum size of a single debt buyback operation could exceed the previously announced $4 billion, adding that Washington possesses a powerful toolkit for the Treasury market and can shed its debt burden "through its own development." Following these remarks, Treasury yields immediately declined, extending gold's upward momentum. Market analysts interpret this as the Treasury being compelled to repurchase long-dated bonds to support the market, effectively exposing the fragility of US fiscal debt rollover. When markets begin to question the sustainability of Treasuries and fiscal policy, the de-dollarization narrative strengthens. Furthermore, this buyback operation signals clear policy intent — an implicit ceiling on long-end rates — and lower real interest rates directly reduce the opportunity cost of holding commodities like gold, while the reinforced "fiscal dominance" narrative could further support pricing in the non-ferrous metals complex.
Looking at specific segments, spot gold was trading above $4,560 per ounce at the time of writing. Tianfeng Securities notes that from a global reserve structure perspective, US Treasuries and gold can be viewed as substitutes. After the Treasury announced plans to expand long-dated bond buybacks on August 19, COMEX gold futures broke above $4,500 per ounce, potentially opening further upside for the precious metal. If gold can hold above the $4,500 level, it may attract additional momentum-driven capital inflows.
In the lithium sector, the GFEX lithium carbonate main contract rose 4.12% to 158,700 yuan per ton, accumulating a 12% gain since its August 3 stage low. Industry insiders say that since 2026, global lithium supply has continued to contract, combined with rapid demand growth from both new energy vehicles and energy storage, keeping domestic lithium supply and demand in a tight balance. CITIC Securities believes the non-ferrous metals sector is currently in a favorable window of "supply constraints plus demand recovery," with lithium prices stabilizing at the bottom, copper and aluminum inventories at low levels, and gold prices trending higher — all sub-sectors present allocation value. The firm recommends focusing on the dual opportunity of lithium mining rebounds and industrial metals demand recovery.
Different non-ferrous metals have varying fundamentals, rhythms, and growth drivers, so divergence is inevitable. For investors bullish on the broader sector, a simpler approach is to gain full coverage and better capture the beta of the entire complex. The Nonferrous Metals ETF HuaBao (159876) and its feeder funds (Class A: 017140, Class C: 017141) track an index that comprehensively covers copper, aluminum, rare earths, gold, lithium, tungsten, molybdenum, and tin industries — spanning precious metals, industrial metals, energy metals, and strategic minor metals. This provides fuller exposure to the sector's beta, with heavyweight holdings including Zijin Mining, CMOC Group, Northern Rare Earth, Aluminum Corporation of China, and China Gold International. The ETF also supports margin trading, making it an efficient one-click tool for non-ferrous metals allocation.
Risk disclosure: The Nonferrous Metals ETF HuaBao passively tracks the CSI Nonferrous Metals Index, which has a base date of December 31, 2013, and was published on July 13, 2015. Constituent stocks are adjusted periodically according to index rules, and historical backtested performance does not indicate future index returns. The fund manager assesses the fund's risk level as R3-moderate risk, suitable for investors with a balanced (C3) profile or above; please refer to the sales institution for suitability matching opinions. Any information appearing in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are solely responsible for their own investment decisions. Additionally, any views, analyses, or forecasts herein do not constitute investment advice of any form to readers, nor do they bear liability for any direct or indirect losses arising from the use of this content. Fund investing involves risks. Past performance of funds does not represent future performance, and the performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Please invest cautiously.
Comments