Today (May 18), the market consolidated, with all three major A-share indices in the red. The Huabao Non-Ferrous Metals ETF (159876), which aggregates leading companies in the non-ferrous metals industry, followed the market trend and adjusted, with its on-market price currently down 1.88%. Capital may have entered the market on the dip, as data shows the ETF received a net real-time subscription of 8.4 million shares. It also attracted 10.34 million yuan in a single day in the previous trading session.
Regarding constituent stocks, lead-zinc leader Huayu Mining led gains with an increase of over 3%. Copper industry leader Jintian Copper and lead-zinc leader Guocheng Mining rose by more than 2%. On the other hand, rare earth leaders were among the top decliners, with China Rare Earth Metals falling over 5%, and China Rare Earth and Shenghe Resources declining by more than 4%, dragging down the index performance.
China Galaxy Securities pointed 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 caused a pullback in non-ferrous metals prices from their highs, by mid-April, as market sentiment regarding Middle Eastern geopolitical events gradually subsided, U.S.-Iran ceasefire negotiations progressed, and uncertainties around economic and liquidity expectations converged, market risk appetite continued to recover. This is expected to support non-ferrous metals prices returning to an upward trajectory, with room for further earnings growth in the sector.
Data shows that in Q1 2026, among the 60 constituent stocks of the Huabao Non-Ferrous Metals ETF (159876), 59 companies reported profits, with 80% achieving double-digit growth in net profit attributable to parent company shareholders. Twenty-two companies reported triple-digit year-on-year increases in net profit attributable to parent company shareholders!
Chart: Top 15 Constituent Stocks of Huabao Non-Ferrous Metals ETF (159876) by Year-on-Year Growth in Net Profit Attributable to Parent Company Shareholders for Q1
[The Non-Ferrous Metals Trend Has Arrived, the "Super Cycle" Is Unstoppable]
The Huabao Non-Ferrous Metals ETF (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, encompassing different cyclical phases like precious metals (safe-haven), strategic metals (growth), and industrial metals (recovery). This broad coverage allows for better capture of the sector's beta performance. Additionally, this ETF is a margin trading and securities lending target, making it an efficient tool for gaining exposure to the non-ferrous metals sector.
As of the end of April, the Huabao Non-Ferrous Metals ETF (159876) had a latest size of 1.865 billion yuan, making it the largest ETF among the three ETF products tracking the same underlying index in the entire market.
Note: The Huabao Non-Ferrous Metals ETF (159876) was previously referred to on-market as the Non-Ferrous Metals Leaders ETF.
Risk Disclosure: The Huabao Non-Ferrous Metals ETF passively tracks the CSI Non-Ferrous Metals Index. The base date of 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 backtested historical performance does not indicate future index performance. The index constituent stocks mentioned herein are for illustrative purposes only. Descriptions of individual stocks do not constitute any form of investment advice and do not represent the holdings or trading activities 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. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) 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 liability is assumed for any direct or indirect losses arising from the use of this content. Fund investment involves risks. The past performance of a fund does not indicate its future performance. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Caution is advised in fund investment.
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