On Friday, March 27, major A-share indices closed in negative territory. However, the Huabao Nonferrous Metals ETF (159876), which provides comprehensive exposure to leading companies in the gold, rare earths, copper, aluminum, and other nonferrous metals sectors, demonstrated notable resilience. The ETF saw its intraday price increase by as much as 0.7%.
Among its constituent stocks, lithium industry leader Yongxing Special Materials Technology Co.,Ltd. rose over 5%, while Shenzhen Chengxin Lithium Group Co., Ltd. gained more than 4%. Gold sector leader Chifeng Jilong Gold Mining Co., Ltd. advanced over 3%, with aluminum producers such as Shenhuo Coal & Power Co., Ltd., Xinjiang Tianshan Aluminum Co., Ltd., and Yunnan Aluminium Co., Ltd. also posting gains.
Market catalysts included remarks from former President Trump regarding a potential 10-day delay in strikes on Iranian power plants, leading to significant volatility in international oil prices. Brent crude futures extended losses to 1%, while spot gold prices climbed above $4,400 per ounce. CITIC Securities pointed out that following the conclusion of Middle East geopolitical events, gold has the potential to reach new highs. Historical trends suggest that after Middle East conflicts, the medium-term trajectory of gold prices remains influenced by U.S. dollar credibility and liquidity factors. Looking beyond the current conflict, continued loose liquidity and a weakening U.S. dollar credit trend are expected to further drive gold prices higher. Additionally, historical valuation or price-level advantages tend to amplify the upside potential for the gold sector.
Regarding the lithium industry, Huatai Securities believes that the global lithium carbonate market is expected to maintain a tight supply-demand balance. Recent liquidity tightening and shifts in risk appetite due to Middle East events contributed to weaker lithium price performance. However, considering potential supply disruptions in the second half of the year from domestic sources like Yichun and international regions such as Zimbabwe, coupled with demand-side boosts from high oil prices benefiting electric vehicle and energy storage expectations, a neutral forecast for 2026—assuming global new energy vehicle sales growth of 10-15% year-over-year and energy storage cell shipment growth of 50-60%—suggests a sustained tight balance in the global lithium carbonate market.
Looking ahead, Huatai Securities is optimistic about the rebound opportunities in the oversold nonferrous metals sector. For gold, historical patterns indicate rapid rebounds often follow geopolitical conflicts, with continued central bank purchases providing a floor for prices. In industrial metals, tight copper mine supply and declining domestic inventories, alongside unpriced capacity risks for aluminum in the Middle East, underpin fundamental support. For minor metals, varieties like rare earths, tungsten, molybdenum, and cobalt are catalyzed by geopolitical tensions, with expectations for strategic reserves and military restocking strengthening. Their highly concentrated supply within China, making them difficult to replace externally, enhances their resilience and medium-term allocation value, making the post-correction recovery opportunities worth close attention.
The Huabao Nonferrous Metals ETF (159876) and its feeder funds (Class A: 017140, Class C: 017141) track an index that comprehensively covers sectors including copper, aluminum, gold, rare earths, and lithium, spanning different cycles such as precious metals (for hedging), strategic metals (for growth), and industrial metals (for recovery). This broad coverage allows for better capture of the sector's beta movements. Furthermore, the ETF is a margin trading security, offering an efficient tool for a one-stop allocation to the nonferrous metals sector.
As of the end of February, the Huabao Nonferrous Metals ETF (159876) had a net asset value of 2.427 billion yuan, with an average daily trading volume exceeding 100 million yuan over the past month. Among the three ETFs tracking the same underlying index in the market, it leads in both size and liquidity.
Note: The Huabao Nonferrous Metals ETF (159876) was previously known as the Leading Nonferrous Metals ETF on the market. Reminder: Recent market volatility may be significant, and short-term price movements are not indicative of future performance. Investors should make rational investment decisions based on their own financial situation and risk tolerance, paying close attention to position management and risk control. Risk Warning: The Huabao Nonferrous Metals ETF passively tracks the CSI Nonferrous Metals Index. The index's base date is December 31, 2013, and it was launched on July 13, 2015. The index's performance over the past five full years is as follows: 2021, +35.89%; 2022, -19.22%; 2023, -10.43%; 2024, +2.96%; 2025, +91.67%. The index's constituent stocks are adjusted according to its compilation rules, and its past performance does not predict future results. The mention of individual stocks herein is for illustrative purposes only and does not constitute investment advice in any form, nor does it represent the holdings or trading动向 of any fund managed by the management company. The fund manager assesses this fund's risk level as R3-Medium Risk, suitable for investors with a Balanced (C3) or higher risk profile. Suitability matching opinions should be based on the sales institution. Any information appearing in this article is for reference only, and investors are solely responsible for their independent investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice to readers and shall not be held liable for any direct or indirect losses resulting from the use of this content. Fund investment carries risks; past performance of a fund does not indicate its future results, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest with caution.
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