Friday's trading session brought broad consolidation across A-shares, with all major indices pulling back as the non-ferrous metals sector took the hardest hit, leading the market's decline.
The benchmark index tracked by the Hwabao Non-Ferrous Metals ETF (159876), which holds the sector's top players, gapped down at the open and fell as much as 6.4% during intraday trading before closing 4.04% lower. Among its constituent stocks, Tianjin Zhongwang Aluminium (WTSC) defied the trend with a gain of more than 3%, Anhui Truchum Advanced Materials (CJM) advanced over 2%, and Chifeng Jilong Gold (CFG) managed to close in positive territory. On the downside, copper giants led the losses, with Northern Copper (NCIE) hitting the daily limit down and Yunnan Copper (YC) dropping over 8%, making them the worst performers. Heavyweight names like Zijin Mining (ZJM) and CMOC Group (CMOC) also retreated in line with the market.
What triggered such a sharp correction in non-ferrous metals? Several factors appear to be at play: First, the U.S. Producer Price Index (PPI) came in hotter than expected, driven mainly by higher energy costs, which has fueled speculation that the Federal Reserve may accelerate its interest rate hikes. Second, the European Central Bank's 25-basis-point rate increase, combined with growing expectations of a rate hike in Japan, has intensified concerns about tighter global liquidity, pointing to a stronger U.S. dollar. A firmer dollar raises the carrying cost of dollar-denominated metals, pressuring their prices. Third, the White House has yet to finalize its tariff policy on refined copper. Recent copper price gains were partly supported by tariff expectations, but as the policy pace slows, that support is beginning to erode.
According to Hwabao Fund's analysis, the emotional overselling in today's pullback is quite pronounced. The delay in copper tariffs is merely a tactical move by the Trump administration ahead of the midterm elections, not an indication that the policy will be shelved entirely. Although the U.S. has seen some short-term inventory builds, global stockpiles are still slowly declining, and the tight supply-demand balance remains intact, providing solid support for copper prices at current levels. The broader market sell-off is primarily a reaction to the stronger-than-expected PPI data and overseas rate hike expectations converging. However, the PPI overshoot was largely a result of higher crude oil prices, and PPI alone cannot directly signal the direction of tonight's U.S. CPI reading. There is room for short-term panic to ease.
Looking ahead, the U.S. CPI inflation data, scheduled for release at 8:30 p.m. Beijing time tonight (September 11), could have a direct impact on the Federal Reserve's decision at its September policy meeting scheduled for September 15-16. That outcome will influence whether the financial pressure on non-ferrous metals begins to lift.
Hwabao Fund argues that the current market swings are mainly driven by capital staying on the sidelines and sentiment-driven positioning ahead of key events, rather than any deterioration in the industry's fundamentals. Investors are advised to stay rational, avoid emotion-led trading, and patiently wait for the macro uncertainties to fully play out. In the new market phase after the Fed's September meeting and before the U.S. midterm elections in November, the sector's valuation recovery and fundamental growth narrative are expected to gradually come back into focus. Overall, the short-term pullback is helping to solidify the sector's bottom, and the long-term allocation value of non-ferrous metals remains compelling.
In the age of computing power, non-ferrous metals form the foundation. The Hwabao Non-Ferrous Metals ETF (159876) and its feeder funds (Class A: 017140, Class C: 017141) track an index that provides comprehensive coverage of industry leaders across copper, aluminum, rare earths, gold, lithium, tungsten, molybdenum, and tin. Key holdings include Zijin Mining, CMOC Group, China Northern Rare Earth (CNRE), and Aluminum Corporation of China (Chalco). According to the 2026 interim results, all 60 constituent stocks in the index were profitable, with nearly half reporting net profit growth exceeding 100% year-on-year, underscoring strong fundamentals. Additionally, the index holds significantly more constituents than similar non-ferrous metal indices (which typically range from 30 to 50), offering broader exposure to semiconductor and new materials themes. This makes it an efficient one-stop tool for investors who are bullish on both technology and non-ferrous metals, capturing the sector's overall beta. Data sourced from exchanges, as of September 11, 2026.
Note: The individual stocks mentioned in this article are all constituent stocks of the index tracked by the Hwabao Non-Ferrous Metals ETF (159876). As of end-August, their weightings were: Tianjin Zhongwang Aluminium, 0.97%; Anhui Truchum Advanced Materials, 0.57%; Chifeng Jilong Gold, 3.33%; Northern Copper, 0.62%; Yunnan Copper, 1.08%; Zijin Mining, 11.14%; CMOC Group, 7.12%; China Northern Rare Earth, 4.40%; and Chalco, 3.31%. The constituent stocks mentioned are for illustrative purposes only and do not constitute investment advice in any form, nor do they represent the holdings or trading activities of any fund managed by the asset manager.
ETF fee disclosure: When subscribing or redeeming fund shares, the authorized broker may charge a commission of up to 0.5%. On-exchange trading fees are subject to actual charges by the securities firm. The ETF does not charge a sales service fee. Feeder fund fee disclosure: For the Hwabao CSI Non-Ferrous Metals ETF Feeder Fund (Class A), the subscription fee is 1,000 yuan per transaction for amounts of 2 million yuan or more, 0.6% for amounts between 1 million and 2 million yuan, and 1% for amounts below 1 million yuan. The redemption fee is 1.5% for holdings of less than 7 days and 0% for holdings of 7 days or more; no sales service fee applies. The Class C shares charge no subscription fee, with a redemption fee of 1.5% for holdings under 7 days and 0% for holdings of 7 days or more; the sales service fee is 0.3%.
Risk disclosure: The Hwabao Non-Ferrous Metals ETF passively tracks the CSI Non-Ferrous Metals Index, which uses December 31, 2013 as its base date and was published on July 13, 2015. The index's constituent stocks are adjusted periodically according to its methodology, and historical backtested performance does not indicate future returns. The fund's risk level, as assessed by the fund manager, is R3-Medium Risk, suitable for investors classified as balanced (C3) or above. Please refer to the sales institution for the appropriate matching opinion. Any information in this article (including but not limited to stocks, commentary, forecasts, charts, indicators, theories, or any form of expression) is for reference only, and investors are solely responsible for their own investment decisions. Additionally, any views, analyses, or predictions in this article do not constitute investment advice to readers and shall not be held liable for any direct or indirect losses arising from the use of such content. Fund investing involves risk; past performance is not indicative of future results, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. Please invest with caution.
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