Today (February 2nd), the three major A-share indices all fell by over 2%. The previously highly popular ETF, which had been repeatedly hitting new listing highs—HuaBao Nonferrous Metals ETF (159876)—adjusted downwards with the market. Its intraday decline once narrowed to 4.94% but ultimately closed at the daily limit-down, with its daily K-line forming an inverted T-shaped doji, indicating intensified divergence between bulls and bears.
Regarding component stocks, only Huafon Aluminium managed to close in positive territory against the market trend, while the remaining 59 stocks declined. Twenty individual stocks, including Aluminum Corp of China (Chalco), Shandong Gold, and Tongling Nonferrous Metals, hit the daily limit-down.
Why did the nonferrous metals sector experience such a significant decline? Firstly, unexpected external variables emerged: the US leveraged loan index is falling, retreating to its lowest point since April 2025. Tianfeng Securities emphasized that an impact from US dollar liquidity might be imminent*, which could push the US Dollar Index higher in the short term, thereby putting pressure on US dollar-denominated nonferrous metals. Secondly, factors such as profit-taking and short-term futures traders unwinding long positions contributed. Founder Securities pointed out that following the sharp surge in gold and silver prices over the past month, this market sell-off was inevitable*.
Looking ahead, New湖 Futures believes medium to long-term support for gold prices remains intact. It notes that the nomination of [Warsh] and the resulting exchange rate fluctuations are short-term disturbances; the medium-term market focus will likely remain on escalating geopolitical risks and the high uncertainty surrounding Trump administration policies. In the long term, the deterioration of global debt sustainability and the deepening trend of de-dollarization are core variables supporting a structural strengthening of gold. Currently, these medium to long-term logics have not fundamentally reversed.*
Some institutions maintain a long-term bullish stance on the nonferrous metals sector despite market panic. CITIC Securities points out that following the significant rally in 2025, the upward momentum for nonferrous metal prices and related stock performance remains ample. Supply disruptions, robust demand in specific sectors, and stockpiling activities provide strong support for metal prices. Increased trading activity driven by loose liquidity and rising safe-haven demand due to geopolitical conflicts are expected to amplify price elasticity for metals. They are optimistic about the allocation value of precious metals, industrial metals, battery metals, and strategic metals sectors.*
Although the overall market outlook for nonferrous metals remains bullish in the medium to long term, Dongfang Jincheng cautions that short-term risks related to speculative funds taking profits need vigilance, as volatility may increase. Huatai Securities recommends a medium allocation* to the nonferrous metals sector—representing 10%-20% of one's fund portfolio—to both capture potential upside from the sector's rise and diversify risk.
[Nonferrous Metals Sector Momentum Arrives, "Super Cycle" Appears Unstoppable] HuaBao Nonferrous Metals ETF (159876) and its linked funds (Class A: 017140, Class C: 017141) track a benchmark index that comprehensively covers industries such as copper, aluminum, gold, rare earths, and lithium, spanning different cyclical phases including precious metals (safe-haven), strategic metals (growth), and industrial metals (recovery). This broad coverage allows for better capture of the entire sector's beta performance. Simultaneously, this ETF is a margin trading target, making it an efficient tool for a one-click allocation to the nonferrous metals sector.
*Institutional views reference sources: ① Tianfeng Securities report "February Allocation Strategy: Potential US Dollar Liquidity Impact Imminent" released January 31, 2026; ② Founder Securities "Nonferrous Metals Industry Weekly Report" released January 31, 2026; ③ New湖 Futures "Precious Metals Market Daily Observation" released February 2, 2026; ④ CITIC Securities "Nonferrous Metals Industry February 2026 Investment Strategy: Embracing the Era of Metal Premiums" released February 2, 2026; ⑤ Huatai Securities "Mid-view景气 and Tactical Allocation Monthly Report – What are the Drivers of the Initial景气 Inflection Point?" released January 8, 2026. Reminder: Recent market volatility may be significant; short-term gains or losses do not predict future performance. Investors must invest rationally based on their own financial situation and risk tolerance, paying high attention to position management and risk control.
ETF fee-related explanation: When investors subscribe for or redeem fund units, subscription/redemption agents may charge a commission of up to 0.5%. Intraday trading fees are subject to the actual charges by securities firms. ETFs do not charge sales service fees. Linked fund fee explanation: For HuaBao CSI Nonferrous Metals ETF Feeder Fund (Class A), the subscription fee rate is 1,000 RMB per transaction for subscription amounts of 2 million RMB (inclusive) or above, 0.6% for amounts between 1 million RMB (inclusive) and 2 million RMB, and 1% for amounts below 1 million RMB. The redemption fee rate is 1.5% for holding periods under 7 days, and 0% for holding periods of 7 days (inclusive) or more. No sales service fee is charged. HuaBao CSI Nonferrous Metals ETF Feeder Fund (Class C) charges no subscription fee. The redemption fee rate is 1.5% for holding periods under 7 days, and 0% for holding periods of 7 days (inclusive) or more. The sales service fee is 0.3%.
Risk提示: HuaBao Nonferrous Metals ETF and its linked funds passively track the CSI Nonferrous Metals Index. The base date for this index is December 31, 2013, and it was published on July 13, 2015. The index's performance over the last five complete 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 its future performance. The mention of index constituents herein is for display purposes only; descriptions of individual stocks do not constitute investment advice in any form nor represent the holdings or trading动向 of any fund managed by the management company. The fund manager assesses this fund's risk等级 as R3-Medium Risk, suitable for investors with a Balanced (C3) or higher risk profile. Suitability matching opinions are subject to the selling institution. Any 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 solely responsible for any independent investment decisions. Furthermore, any views, analysis, or forecasts in this article do not constitute investment advice of any kind to the reader, and no liability is accepted for any direct or indirect losses arising from the use of this article's content. Fund investment carries risks. The past performance of a fund does not indicate its future returns. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest in funds cautiously.
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