Today (September 3rd), the Non-Ferrous Leaders ETF (159876), which encompasses leading companies in the non-ferrous metals industry, showed early morning activity with intraday prices rising over 1.8% before pulling back with the broader market, currently down 0.78%.
Notably, capital continues to flow into the fund for positioning! As of press time, the Non-Ferrous Leaders ETF (159876) has received real-time net inflows of 21.6 million shares. Shenzhen Stock Exchange data shows that the ETF attracted significant capital inflows totaling 75.6 million yuan over the past two days, with assets under management reaching a new high of 207 million yuan as of September 2nd.
Among constituent stocks, Western Region Gold Co.,Ltd. hit the daily limit up, while Jiangxi Copper Company, Zhongjin Gold Corporation, and Shengxin Lithium Energy gained over 2%. On the downside, China Northern Rare Earth fell over 7%, while China Molybdenum Co. and Beijing Youyan New Materials Technology dropped more than 6%, leading the declines.
On the news front, driven by Federal Reserve rate cut expectations, London spot gold broke through the $3,500 per ounce threshold on September 2nd, setting a new record high. For gold's year-end target price, Morgan Stanley has raised its forecast to $3,800 per ounce. Multiple institutions predict that after four months of sideways trading, precious metals are poised to begin a new upward trend.
Fundamentally, all 60 constituent stocks of the CSI Non-Ferrous Metals Index have disclosed their 2025 interim reports, with 55 stocks achieving profitability in the first half, representing over 91% of the index. In terms of year-over-year growth in net profit attributable to shareholders, 10 stocks achieved double-digit growth, with China Northern Rare Earth leading with a surge of 1,951%, while Guocheng Mining's net profit also soared 1,111%.
Chart: Non-Ferrous Leaders ETF 2025 Interim Report - Constituent Stocks with Over 100% YoY Growth in Net Profit Attributable to Shareholders
Looking ahead, Huabao Fund notes that the boost from economic recovery expectations on cyclical commodities has not been fully reflected, with the next phase of pricing depending on manufacturing demand's support for non-ferrous metals. Recent sector performance has mainly benefited from signs of a breakthrough after months of gold consolidation, with the long-term logic for gold under dollar rate cut expectations requiring observation of USD and RMB exchange rate changes.
CITIC Securities Construction Investment states that beyond monetary easing from the Federal Reserve's rate-cutting cycle, domestic "anti-involution" policies are optimizing production factors, enhancing profitability across various segments and improving market expectations, which benefits the transmission of metal price increases downstream. Additionally, industrial metals sector valuations remain at relatively low levels with room for upward correction. A non-ferrous metals bull market driven by both EPS and PE expansion is underway.
The 'metallic heart' of future industries and the 'golden blood' of modern industry! According to SW Level 3 industry classification, as of the end of August, the CSI Non-Ferrous Metals Index tracked passively by the Non-Ferrous Leaders ETF (159876) and its feeder funds (Class A: 017140, Class C: 017141) has sector weightings of 25.3% for copper, 14.2% for aluminum, 13.8% for rare earths, 13.6% for gold, and 7.6% for lithium. Compared to investing in single metal industries, this provides risk diversification and is suitable as part of a portfolio allocation.
Risk Warning: The Non-Ferrous Leaders ETF (159876) and its feeder funds (Class A: 017140, Class C: 017141) passively track the CSI Non-Ferrous Metals Index. The index base date is December 31, 2013, with a launch date of July 13, 2015. The index's performance over the past 5 complete years was: 2020: 35.84%; 2021: 35.89%; 2022: -19.22%; 2023: -10.43%; 2024: 2.96%. Index constituent composition is adjusted according to index methodology rules, and historical backtesting performance does not predict future index performance. Individual stocks mentioned in this article are for display purposes only and do not constitute investment advice, nor do they represent holdings or trading activities of any funds managed by the fund manager. The fund manager assesses this fund's risk level as R3-Medium Risk, suitable for balanced (C3) and above investors. Suitability matching opinions should be based on sales institutions. Any information appearing in this article (including but not limited to individual stocks, comments, predictions, charts, indicators, theories, any form of expression, etc.) is for reference only, and investors must be responsible for any autonomous investment decisions. Furthermore, any views, analyses, and predictions in this article do not constitute investment advice to readers in any form, nor do they bear any responsibility for direct or indirect losses caused by using the content of this article. Fund investment involves risks. Past performance of funds does not represent future performance. Performance of other funds managed by the fund manager does not guarantee fund performance. Fund investment should be conducted with caution.
MACD golden cross signal formed, these stocks show good upward momentum!
Comments