Today (November 7), the power equipment sector saw a net inflow of 16.776 billion yuan in main capital, ranking second among the 31 Shenwan primary industries in terms of capital attraction. Among popular ETFs, the Green Energy ETF (562010), the only one tracking the green energy index, surged 2.22% intraday and closed up 1.64%, breaking through all moving averages and securing a three-day winning streak.
Leading battery chemical stocks outperformed, with Tianhua New Energy up over 15%, Hunan Yuneng and Guangzhou Tinci Materials rising more than 9%, while Shenzhen Capchem and Yunnan Energy New Material followed with strong gains. Solar silicon and wafer leaders Daqo New Energy and Tongwei Co. climbed over 6%. Lithium industry leaders Yongxing Materials and Tianqi Lithium also delivered solid performances.
Key catalysts behind the electrolyte sector's strength include: 1. **Guangzhou Tinci Materials signed a major order** totaling nearly 1.6 million tons. On November 6, the electrolyte leader announced long-term supply agreements with CALB and Guoxuan High-Tech, with combined deliveries expected to reach 1.595 million tons. 2. **Electrolyte prices surged nearly 20%**. Since August, electrolyte and lithium hexafluorophosphate prices have rebounded from lows, signaling a clear recovery in industry sentiment. The price hike in lithium hexafluorophosphate, a key electrolyte raw material, has further driven electrolyte costs upward.
Zhongyuan Securities attributes the price increases to two factors: reduced supply due to shutdowns of high-cost lithium hexafluorophosphate capacity and strong seasonal demand from energy storage and commercial vehicles, creating a supply-demand mismatch. The firm expects further short-term price gains for both materials.
The market is also eyeing potential consolidation in the polysilicon sector, with plans for a "consortium" platform and a ~70 billion yuan fund under discussion.
Looking ahead, the 8th China International Photovoltaic and Energy Storage Industry Conference will be held in Chengdu from November 17–20. Zheshang Securities highlights the green energy sector's valuation recovery potential, citing: 1. Strong domestic and overseas demand driving energy storage growth. 2. Efficiency improvements and cost reductions fueling new PV technology adoption. 3. Expanding global market opportunities boosting industry profitability.
**Green Energy ETF (562010)**, tracking the green energy index, is heavily weighted in batteries (75%+ combined), PV equipment, and power. Top holdings include CATL, Sungrow Power, China Yangtze Power, BYD, LONGi Green Energy, Eve Energy, Huayou Cobalt, Ganfeng Lithium, Tongwei Co., and Lead Intelligent Equipment.
**Risk Disclosure**: The Green Energy ETF passively tracks its underlying index, which was established on December 31, 2013, and launched on August 19, 2021. Index components are adjusted per its rules, and past performance does not guarantee future results. Constituent stocks are for reference only and do not constitute investment advice or reflect fund holdings. The fund is rated R3 (moderate risk) and suitable for balanced (C3) or higher-risk investors. Investment decisions should be made independently, and no liability is assumed for direct or indirect losses from using this information. Fund investments carry risks, and past performance is not indicative of future returns.
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