Major A-share indices closed higher today (July 6th), with the nonferrous metals sector leading the gains. The largest ETF tracking the sector, the Nonferrous Metals ETF Huabao (159876), saw its intraday price surge as much as 3.16% and is currently up 2.35%. As of this report, it has attracted net subscriptions of 1.8 million units. Notably, the fund also saw significant inflows over the previous two trading sessions, amassing a total of 215 million yuan.
Among its constituent stocks, Baiyin Nonferrous Metals hit the daily limit-up, Zhongjin Lingnan surged over 8%, Hunan Silver rose more than 6%, with Shanjin International, Guocheng Mining, Chifeng Gold, Xingye Yinyin and other stocks also posting strong gains.
On the news front, a report from the World Gold Council (WGC) revealed that global central banks added a net 41 tonnes of gold to their official reserves in May 2026, marking a rebound from April. The buying activity was primarily concentrated in emerging market economies such as Poland, China, Uzbekistan, and Kazakhstan. Analysts suggest this indicates official sectors are focusing on gold's long-term strategic allocation value within national reserves, and official demand is expected to remain a key long-term support for the gold market.
HSBC forecasts that gold prices could rise further by year-end, with the precious metal continuing to serve as a robust asset allocation tool against a backdrop of geopolitical uncertainty and sustained central bank purchasing trends.
CITIC Securities points out that the gold sector is poised for a double boost from valuation and earnings at the current market bottom. Gold stocks have been severely oversold since the U.S.-Iran conflict. The current price-to-earnings ratios and resource valuation multiples of gold stocks offer a strong margin of safety. The firm expects gold prices to trade in the range of $4,000 to $4,500 per ounce in Q3 2026, potentially rising to $4,500-$5,000 per ounce if expectations for interest rate hikes are fully revised. The gold sector stands to benefit from a simultaneous recovery in earnings expectations and valuation levels, making its current configuration opportunity highly significant.
In the aluminum sector, Tianshan Aluminum Group Co.,Ltd. (Tianshan Aluminum) has forecast a 102% year-on-year increase in its first-half net profit, driven by higher volumes and prices for its high-purity aluminum and aluminum foil products. The company announced an estimated net profit attributable to shareholders of 4.2 billion yuan for the first half of 2026, representing a 101.52% increase. This growth is attributed primarily to rising sales prices for electrolytic aluminum, synergistic volume-price effects, and effective integrated cost control, which significantly boosted profitability. Additionally, the aluminum deep-processing segment, particularly high-purity aluminum and aluminum foil products, contributed to increased profits through higher volumes and prices.
Huatai Securities notes that the nonferrous metals sector's relative valuation is currently at an extreme historical low, presenting a high risk-reward profile. CITIC Securities believes the external environment is undergoing significant changes, and the nonferrous metals sector, which was among the hardest hit previously, is poised for a rebound. Coupled with mid-year earnings expectations, the sustainability and strength of this rebound could surpass previous cycles.
Nonferrous Metals Sector Momentum Builds
The Nonferrous Metals ETF Huabao (159876) and its feeder fund (Class A: 017140, Class C: 017141) track an index comprehensively covering industries such as copper, aluminum, gold, rare earths, lithium, tungsten, molybdenum, and tin. This broad coverage allows for better capture of the sector's overall beta movements. Furthermore, this ETF is a margin trading and securities lending target, serving as an efficient tool for a one-stop allocation to the nonferrous metals sector.
As of July 3rd, the Nonferrous Metals ETF Huabao (159876) had a net asset value of 1.564 billion yuan, making it the largest ETF among the three products tracking the same underlying index in the market.
Note: The Nonferrous Metals ETF Huabao (159876) was previously known as the Nonferrous Metals Leaders ETF.
ETF Fee Information: Subscription and redemption agents may charge a commission of up to 0.5% when investors subscribe for or redeem fund units. Fees for on-exchange transactions are subject to the rates charged by the investor's securities firm. This ETF does not charge a sales service fee.
Risk Disclosure: The Nonferrous Metals ETF Huabao passively tracks the CSI Nonferrous Metals Index. The index's base date is December 31, 2013, and its release date is July 13, 2015. The composition of the index's constituent stocks is adjusted according to its compilation rules, and its historical back-tested performance does not indicate future results. The mention of index constituents in this article is for illustrative purposes only. Descriptions of individual stocks are not intended as investment advice in any form and do not represent the holdings or trading intentions of any fund managed by the fund manager. The fund manager assesses this fund's risk level as R3 - Medium Risk, suitable for Balanced (C3) and higher risk-tolerance investors. The appropriateness matching opinion is 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 responsible for their own investment decisions. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice of any kind to the reader, and no responsibility is accepted for any direct or indirect losses arising from the use of this content. Fund investment involves 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. Investors should exercise caution when investing in funds.
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