China's major stock indices staged a strong advance today (June 12). At the close, the Shanghai Composite Index rose 1.12%, reclaiming ground above the 4000-point level to finish at 4031.51. The Shenzhen Component Index gained 0.75%, and the ChiNext Index increased by 0.50%. Combined trading volume across the Shanghai, Shenzhen, and Beijing exchanges reached 3236.3 billion yuan, representing a significant increase of 661.2 billion yuan from the previous session.
In terms of market performance, cyclical sectors remained strong throughout the day, with the non-ferrous metals sector leading the gains across the board. The largest ETF tracking the corresponding index, the Huabao Non-ferrous Metals ETF (159876), surged over 7% at its intraday peak. The chemicals sector also launched a strong offensive, with the Huabao Chemicals ETF (516020), whose constituents cover hot themes like AI computing power, anti-involution, robotics, and new energy, closing up 3.45%. The aerospace sector, which has been quiet for some time, saw a notable breakout. The Huabao General Aviation ETF (159231), providing one-stop exposure to commercial aerospace, satellite navigation, the low-altitude economy, and large aircraft, jumped over 5% during the session. The fintech sector rebounded from lower levels, with the largest fintech ETF by scale, the Huabao Fintech ETF (159851), closing up 3.66%.
Market Outlook Perspectives
Looking ahead, one securities firm noted that in a horizontal comparison, the A-share market entered a consolidation phase in mid-May, pricing in global liquidity tightening risks ahead of time, while overseas tech stocks reflected these risks later. Subsequently, the A-share market may operate relatively stably amid global market fluctuations. By late June, as external factors suppressing risk appetite gradually materialize and A-share interim earnings forecasts are successively disclosed, high-growth sectors with solid earnings support and clear industry trends are expected to attract renewed capital allocation.
Another securities firm pointed out that the main trading theme in June may still revolve around risk premium. For domestic assets, risk appetite remains the core variable influencing allocation direction. Within equity assets, the focus may need to continue on technology and advanced manufacturing sectors, which have higher correlation with risk appetite and relatively stronger certainty in their growth trajectories.
Focus on Key Industry ETFs
This analysis will focus on the trading and fundamental situations of ETFs covering sectors like non-ferrous metals, fintech, and general aviation.
Non-Ferrous Metals ETF Sees Strong Inflows and Gains
The non-ferrous metals sector led the market gains, attracting net main fund inflows exceeding 16.7 billion yuan for the day, ranking first among the 31 primary Shenwan industries in terms of fund attraction. CMOC Group Limited saw net main fund inflows of 2.936 billion yuan, topping the list of A-share fund attractors.
Regarding popular ETFs, the largest ETF tracking the corresponding index, the Huabao Non-ferrous Metals ETF (159876), surged over 7% at its intraday peak, closing up 5.15%. Its full-day turnover reached 200 million yuan, a sharp 117% increase from the previous day. It successfully reclaimed its 10-day and 20-day moving averages, achieving a four-day winning streak.
Accompanying the heated market activity, capital actively flowed in. Data shows the Huabao Non-ferrous Metals ETF (159876) saw net subscriptions of 94.6 million units for the day.
Among its constituent stocks, Tongling Nonferrous Metals Group, CMOC Group Limited, Jinduicheng Molybdenum Co., Ltd., North Copper Co., Ltd., Zhejiang Hailiang Co., Ltd., Jintian Copper Group Co., Ltd., and Chihong Zinc and Germanium Co., Ltd. all hit the daily limit-up. Yunnan Tin Company Limited, Yunnan Copper Co., Ltd., and Jiangxi Copper Company Limited touched the limit-up during the session. Heavyweight constituent Zijin Mining Group rose over 6%, while China Northern Rare Earth (Group) High-Tech Co., Ltd. and Aluminum Corporation of China Limited gained more than 4%.
Drivers Behind the Sector Rally
What drove today's surge in the non-ferrous metals sector? It can be analyzed from three dimensions:
1. Macro Level: Signals from the U.S. administration regarding an imminent "peace agreement" between the U.S. and Iran led to a retreat in geopolitical risk premium and a significant repair in risk appetite. Previously, the cooler-than-expected U.S. May CPI data significantly alleviated inflation pressures, prompting traders to reduce bets on Federal Reserve rate hikes, temporarily easing rate hike concerns.
2. Industry Level: A technological breakthrough in semiconductor materials, with SK Hynix completing production verification for 375-layer 3D NAND, highlighted the use of molybdenum to replace traditional tungsten for word lines, boosting sentiment across the molybdenum industry chain. Additionally, the continuous realization of "new copper demand" scenarios driven by AI liquid cooling. Zhejiang Hailiang Co., Ltd. showcased liquid cooling precision components like diamond copper and high-performance microchannel cold plates at the Shanghai International Data Center Industry Expo. The surging wave of AI industry development positions non-ferrous metals as key raw materials.
3. Earnings Level: Revenue and net profit for the non-ferrous metals industry show an accelerating upward trend. In Q1 2026, the operating revenue for the non-ferrous metals sector reached 11,443.9 billion yuan, a year-on-year increase of 37.5% (compared to 8.6% in Q1 2025). Net profit attributable to shareholders was 94.8 billion yuan, surging 109.7% year-on-year (compared to 67.3% in the same period of 2025).
One securities firm believes that the sustained strong rise in non-ferrous metal prices accelerated the sector's earnings growth in Q1 2026, while overall sector valuations remain at historically low levels. Although Middle East conflicts previously caused a pullback from highs, as market sentiment gradually digests Middle East geopolitical events, U.S.-Iran ceasefire talks progress, and uncertainties around economic and liquidity expectations converge, the ongoing repair in market risk appetite is expected to support non-ferrous metal prices returning to an upward trajectory, providing room for further earnings improvement in the sector.
Positioning for the Metals Cycle
The Huabao Non-ferrous Metals ETF (159876) and its feeder funds (Class A: 017140; Class C: 017141) track an index that comprehensively covers industries like copper, aluminum, gold, rare earths, and lithium. This broad coverage allows for better capture of the sector's beta performance. This ETF is also a margin trading and securities lending target, serving as an efficient tool for one-stop allocation to the non-ferrous metals sector.
As of the end of May, the latest size of the Huabao Non-ferrous Metals ETF (159876) exceeded 1.5 billion yuan, making it the largest ETF among the three products tracking the same target index in the market.
Aerospace Sector Anticipates Key Event
The aerospace sector, which has been quiet for some time, saw a notable breakout. The Huabao General Aviation ETF (159231), providing exposure to commercial aerospace, satellite navigation, the low-altitude economy, and large aircraft, surged over 5% during the session after hitting a recent low yesterday, ultimately closing up 4%, halting a four-week losing streak. Notably, capital continued to flow in during the recent correction period, with a combined net inflow of 9.5 million yuan over the past 20 days.
Among its constituent stocks, over 90% advanced, with Morning Air Aerospace Technology hitting the 20% daily limit-up. Zhuhai CosMX Battery Co., Ltd. rose over 15%. Wanfeng Auto Wheel Co., Ltd., AVIC Aviation High-Technology Co., Ltd., Zongshen Power Machinery Co., Ltd., and CITIC Offshore Helicopter Co., Ltd. were among five stocks that hit the daily limit-up.
Market attention is focused on SpaceX's official debut on the U.S. stock market tonight, set to complete the largest IPO in history with a valuation of approximately $1.8 trillion, raising $75 billion. One securities firm pointed out that benchmarking against SpaceX's operational path, a clear business model has formed in the global commercial aerospace sector, with launch services as the foundation and satellite applications driving profitability. For the domestic market, China's commercial aerospace is expected to develop in stages: in the short term, relying on policy support and government/enterprise orders to form a stable market base of around 40 billion yuan; in the long term, as reusable rocket technology iterates and launch costs continue to decline, domestic companies are expected to leverage cost-performance advantages to expand into overseas markets, tapping into the global trillion-dollar space service market.
Regarding the low-altitude economy, cities like Shenzhen and Tianjin are accelerating the opening of airspace restrictions, with the nation's first regular low-altitude route being established. Increased policy support is expected to accelerate the industrialization process. Another securities firm noted that an important reason for the previously low market expectations regarding the commercial落地 of the low-altitude economy was the restriction on airspace resource usage. The widespread relaxation of airspace restrictions across multiple regions in the country breaks the previous pattern of "regionally restricted, niche-scenario" low-altitude flights, marking the formal transition of the low-altitude economy from window displays to regular implementation, and from零星 pilots to widespread adoption. The increased policy support for airspace is expected to accelerate the commercialization process, potentially ushering the industry into a new stage of development.
The Huabao General Aviation ETF (159231) and its feeder funds (Class A: 024766; Class C: 024767) track an index covering 50 aerospace constituent stocks, encompassing hot areas like the low-altitude economy, commercial aerospace, satellite navigation, large aircraft, drones, and military aircraft. Among these, exposure to the low-altitude economy concept exceeds 88%, commercial航天 exposure is over 65%, and satellite navigation concept exposure exceeds 47%, making it a tool for one-stop配置 of China's aerospace industry chain. (Data as of March 31, 2026)
Fintech Sector Rebounds from Lows
As market风格 shifted again, the financial sector saw rare活跃 activity, with the fintech板块 rebounding from lower levels. A large majority of constituent stocks advanced, with Winshine Securities hitting the 20% daily limit-up. Shenwan Hongyuan Group surged 10.84%, Compass Navigation收涨10%. Yinzhuojie Technology, Tonghuashun, Zhongke Jincai, and Dazhihui were among several stocks rising over 5%.
Regarding popular ETFs, after探近 a one-year low the previous day, the largest fintech ETF by scale, the Huabao Fintech ETF (159851), moved异动 higher, closing up 3.66% and站上 the five-day moving average, with turnover放量 to 365 million yuan, a环比 increase.
Long-Term Catalysts and Valuation
From a medium-to-long-term perspective, the fintech sector currently sees a共振 of strong catalysts and low valuations. On one hand,持续 active market trading, coupled with AI technology empowerment, provides solid fundamental support for internet券商 and financial IT. On the other hand, after经历 a回调, sector valuations have fallen to near three-year historical lows, offering both安全边际 and弹性空间. One securities firm stated that the fintech sector may be迎接 a奇点时刻 driven by盈利兑现 and估值修复.
In terms of trading activity, A-share成交 has连续突破 2.5 trillion yuan. The fintech sector's strong beta属性 is突出, and under高流动性, the sector有望持续受益: fundamentals for internet券商 are预期 to持续改善; financial IT, as顺周期高弹性品种, also持续受益 from高流动性;景气度 for C-end stock trading software is向上, while B-end financial IT demand is逐步释放. The same securities firm noted that active交投 and增量 investor入场 are仍在持续,预计 sector盈利 will维持较好表现.
Regarding AI empowerment, as one of the most valuable directions for AI application, financial IT is正受益 from the深度融入 of AI large models into financial scenarios. Under this trend, leading financial IT vendors with productization capabilities and technological壁垒有望保持领先. The securities firm指出 that by深度赋能 through large models to提升单位流量价值 and service efficiency, widening the competitive gap in C-end product experience and ARPU, future板块超额收益 may depend on AI product力加成.
In terms of valuation, the fintech sector is at a low估值 level. As of June 12, 2026, the fintech index has回撤 38% from its high on August 25, 2025, indicating relatively充分 technical adjustment. The index's dynamic P/E ratio is 44 times,位于 the 15th percentile over the past three years, showing明显估值回落. Given its高弹性属性, the sector's配置性价比 may be提升.
The Huabao Fintech ETF (159851) and its feeder funds (Class A: 013477; Class C: 013478) track an index heavily weighted in计算机 and non-bank financials, covering hot themes like internet券商, financial IT, cross-border payment, and AI application. The fund份额 of the Fintech ETF (159851) exceeds 10 billion, ranking断层第一 among the eight ETFs tracking the same target index.
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