Catalyst Support + Pullback Opportunity! Southern Fund's New Energy ETF Helps Seize Phased Allocation Window

As of the close on March 18, 2026, the New Energy ETF (516160) had a turnover rate of 5.15%, with a transaction volume of 389 million yuan. The CSI New Energy Index (399808), which it tracks, declined by 0.35%.

Gong Tao, fund manager of the Southern Fund’s New Energy ETF (516160) and its associated funds, stated that the CSI New Energy Index includes 80 core companies across four major sectors: lithium batteries, energy storage, photovoltaics, and wind power, achieving comprehensive coverage from power generation to electricity consumption in the new energy field. Recent adjustments in the index have been mainly influenced by geopolitical conflicts affecting risk appetite, leading to weaker sentiment. Additionally, short-term factors such as internal sector energy crises and overseas industrial policy shocks have contributed to recent volatility. From a fundamental perspective, sectors like lithium batteries and offshore wind are showing signs of marginal improvement, presenting opportunities for phased allocation during market corrections.

Looking at each sector, catalytic opportunities continue to emerge, highlighting structural opportunities:

In the lithium battery sector, production remains robust despite seasonal expectations, with March experiencing a 20% month-on-month growth, and April expected to maintain growth, suggesting potential for further upside surprises. Last week, the U.S. International Trade Commission announced the removal of tariffs on lithium battery anode materials, reversing previous high tariffs on Chinese imports. This may directly ease pricing pressures on U.S. exports and improve demand margins. As a result, short-term sentiment has turned positive, and in the medium to long term, there are signs that, under the backdrop of overseas power shortages, restrictions on exports may loosen.

In energy storage, domestic capacity electricity prices may reshape project economics over the long term. Demand in Europe, North America, and emerging markets has seen significant growth. Recently, Germany’s Federal Ministry for Economic Affairs and Climate Action announced revisions to renewable energy pricing policies, indicating a shift from subsidy-driven energy policies toward market-based consumption and self-use models. Energy storage is gradually evolving from traditional photovoltaic support to a rigid demand, with continued economic viability driven by electricity prices.

In wind power, offshore wind prospects are promising. Last week, the UK announced the removal of tariffs on 33 offshore wind components, including blade raw materials, generator parts, cables, and booster stations. This move indicates increased government support for offshore wind subsidies and recognizes supply chain shortages domestically, with tariff exemptions aimed at supporting local wind turbine capacity. The UK also demonstrated a more open attitude toward overseas wind products, being more proactive than the EU.

In photovoltaics, the industry cycle remains relatively subdued. Despite signs of price recovery in some segments following joint industry rectification in 2025, issues such as corporate losses, supply-demand imbalances, and overcapacity persist. During the Two Sessions, representatives emphasized the need for the industry to shift from price recovery to systemic reform, proposing mergers, overseas expansion, and strengthening energy efficiency standards and price controls to address overcapacity. Under the backdrop of slowing domestic installations, export pressures, and intensified international competition, the photovoltaic industry is entering a critical transition from scale expansion to high-quality development.

The New Energy ETF (516160) closely tracks the CSI New Energy Index, which includes listed companies involved in renewable energy production, new energy applications, energy storage, and interactive new energy equipment, reflecting the overall performance of related listed companies. The top ten holdings are CATL, Sungrow Power Supply, TBEA, Huayou Cobalt, Longi Green Energy, Ganfeng Lithium, Xiamen Tungsten, EVE Energy, China Nuclear Power, and Goldwind Technology.

New Energy ETF (516160), off-exchange connect (Class A: 012831; Class C: 012832).