Today (May 20th), the Non-Ferrous Metals ETF Huabao (159876), which aggregates leading companies in the non-ferrous metals industry, followed the broader market lower in the morning session, trading below the previous day's close. It then experienced a rapid rebound in the afternoon, with its intraday price surging up to 0.77%. Currently, it is oscillating near the previous close, showing a minor pullback of 0.1%. Following four consecutive days of decline, this may present a potential buying opportunity for capital on dips.
Regarding its constituent stocks, lead and zinc leader Guocheng Mining led gains, rising over 7%. Copper industry leader Jintian Copper and lithium leader Shenghong Lithium Energy gained more than 4%. Aluminum industry leaders Mingtai Aluminum and Huafon Aluminum rose over 3%, ranking among the top gainers.
Following the strong performance of the "photovoltaics" sector, which industries might see a catch-up rally? CITIC Securities believes that over a medium to long-term horizon of six months, industries likely to outperform often need to combine two conditions: solid fundamental momentum and a favorable shareholding structure. Currently, the non-ferrous metals sector is one of the typical industries possessing both of these characteristics.
In terms of earnings performance, for Q1 2026, among the 60 constituent stocks of the Non-Ferrous Metals ETF Huabao (159876), 59 companies reported profits. Eighty percent of the stocks achieved double-digit year-on-year growth in net profit attributable to parent company shareholders, with 22 stocks seeing triple-digit percentage increases. Western Region Gold and Tianqi Lithium even reported explosive growth of 21 times and 17 times year-on-year, respectively.
China Galaxy Securities points out that the sustained strong rise in non-ferrous metals prices has accelerated the earnings growth of the A-share non-ferrous metals industry in Q4 2025 and Q1 2026, while the overall sector valuation remains at historically low levels. Although geopolitical conflicts in the Middle East have caused a pullback in non-ferrous metals prices from their highs, since mid-April, as market sentiment regarding Middle East geopolitical events gradually digested, U.S.-Iran ceasefire talks progressed, and uncertainties surrounding economic and liquidity expectations diminished, market risk appetite has been continuously repairing. This is expected to support non-ferrous metals prices returning to an upward trajectory, providing room for further earnings growth in the sector.
Chart: Top 15 Constituent Stocks of Non-Ferrous Metals ETF Huabao (159876) by Year-on-Year Growth in Q1 Net Profit Attributable to Parent Company Shareholders
[The Non-Ferrous Metals Trend Has Arrived, the "Super Cycle" is Unstoppable] The Non-Ferrous Metals ETF Huabao (159876) and its feeder funds (Class A: 017140, Class C: 017141) track an index that comprehensively covers industries such as copper, aluminum, gold, rare earths, and lithium. It encompasses different phases of the economic cycle, including precious metals (safe-haven), strategic metals (growth), and industrial metals (recovery). This full-category coverage allows for better capture of the sector's overall beta performance. Furthermore, this ETF is a margin trading and securities lending target, serving as an efficient tool for a one-click investment in the non-ferrous metals sector.
As of the end of April, the Non-Ferrous Metals ETF Huabao (159876) had a latest size of 18.65 billion yuan. Among the three ETF products in the entire market tracking the same underlying index, it is the largest ETF by size.
Note: The Non-Ferrous Metals ETF Huabao (159876) was previously known as the Non-Ferrous Metals Leaders ETF in the secondary market.
Risk Disclosure: The Non-Ferrous Metals ETF Huabao passively tracks the CSI Non-Ferrous Metals Index. The base date for this index is December 31, 2013, and it was launched on July 13, 2015. The composition of the index's constituent stocks is adjusted according to its compilation rules, and its back-tested historical performance does not indicate its future performance. The index constituent stocks mentioned herein are for illustrative purposes only. Descriptions of individual stocks do not constitute investment advice in any form, nor do they represent the holdings or trading动向 of any fund managed by the fund manager. The fund manager assesses the risk level of this fund as R3-Medium Risk, suitable for Balanced (C3) and above investors. Suitability matching opinions should be based on the sales institution. All information appearing in this article (including but not limited to individual stocks, commentary, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only. Investors are responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice of any kind to readers, and no responsibility is assumed for any direct or indirect losses arising from the use of this content. Fund investment carries risks. The past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Fund investment requires caution.
A MACD golden cross signal has formed, and these stocks are performing well!
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