"Industry Rally Leader" Non-ferrous Metals Up 95% in Nearly 1 Year! Macro + Policy + Supply-Demand, Multiple Resonance! Huabao Fund Non-ferrous Metals ETF (159876) Reverses Decline with 1% Rebound

Previously, the daily four consecutive declines of the Non-Ferrous Metals ETF (159876) have reversed today (March 17), with intraday gains reaching 1.18%, currently up 0.64%. Among the constituent stocks, over 70% are in the green, with Tengyuan Cobalt, Luoyang Molybdenum leading gains of over 2%. Other stocks such as Zijin Mining, Tin Industry Shares, Huayu Mining, Chifeng Gold, Northern Rare Earth also followed the rally.

Although the non-ferrous metals sector has seen some adjustments since March, this may largely reflect the partial release of previously accumulated valuation pressures. From a crowding perspective, the pullback has eased the previously overheated trading conditions, leading to a healthier trading structure.

Looking at the longer-term trend, the sector has accumulated a 95.95% increase over the past year, outperforming industries like telecommunications, integrated sectors, electrical equipment, and basic chemicals. Among 31 first-level industries in Shenwan, it ranked first in gains.

Data source: China Securities Index Co., Ltd. Statistical period: 2025.3.13 - 2026.3.13. The China Securities Non-Ferrous Metals Index’s performance over the past five full years was: 2021, +35.89%; 2022, -19.22%; 2023, -10.43%; 2024, +2.96%; 2025, +91.67%. The index’s constituent stocks are adjusted periodically according to the index rules. Past backtested performance does not predict future results.

It is noteworthy that the non-ferrous metals sector is entering a new pattern deeply resonating with macro logic, policy, supply and demand, and geopolitical factors:

1. Macro aspect: In recent years, global central banks have continuously increased gold reserves and reduced holdings of US dollar assets. This behavior essentially reflects a proactive reduction of reliance on a single sovereign currency. As more economies seek to diversify their reserves, gold—possessing natural monetary attributes—along with industrial raw materials like copper and aluminum, are beginning to serve functions beyond their commodity nature.

2. Policy aspect: Under the guidance of “anti-involution” policies, the competitive landscape in the industry is expected to gradually stabilize. Leading companies will no longer engage in vicious price wars, improving profit margins and cash flow quality.

3. Supply, demand, and geopolitical factors: Against the backdrop of de-globalization and regional localization, the resource attributes of non-ferrous metals are endowed with strategic significance for national security. Critical mineral resources are no longer just commercial interests but are also crucial for industry chain independence and control.

4. Performance: The 2025 third-quarter reports show strong performance in the sector, with nearly 90% of the 141 listed companies profitable, and 23 companies seeing net profit growth exceeding 100%.

Looking ahead, can the non-ferrous metals sector continue to rise? Industrial Securities believes that non-ferrous metals may regain upward momentum. The current cycle is driven by reshaping overseas manufacturing amid anti-globalization trends and unconventional reserve buildup overseas, differing from traditional currency cycles. This cycle may extend in time and be more durable.

【The non-ferrous metals boom has arrived—‘super cycle’ unstoppable】

The Huabao Non-Ferrous Metals ETF (159876) and its linked funds (A: 017140, C: 017141) fully cover industries such as copper, aluminum, gold, rare earths, and lithium, spanning precious metals (hedging), strategic metals (growth), and industrial metals (recovery), representing different economic cycles. The comprehensive coverage better captures the beta movement of the entire sector. Additionally, this ETF is a margin trading and short-selling target, making it an efficient tool for one-click exposure to the non-ferrous metals sector.

As of the end of February, the latest size of Huabao Non-Ferrous Metals ETF (159876) was 2.427 billion yuan, with an average daily trading volume of over 100 million yuan in the past month. Among three ETFs tracking the same index, it leads in size and liquidity.

Note: The previous intraday abbreviation for Huabao Non-Ferrous Metals ETF (159876) was “Non-Ferrous Leader ETF.”

ETF fee details: When investors subscribe or redeem fund shares, the agent may charge a commission up to 0.5%. Intraday trading fees are based on the actual charges of securities firms. No sales service fee is charged for ETF transactions.

Linked fund fee details: Huabao CSI Non-Ferrous Metals ETF Launch-Style Linked Fund (A) has a subscription fee of 1,000 yuan per transaction for subscriptions of 2 million yuan or more, 0.6% for 1-2 million yuan, and 1% for less than 1 million yuan. Redemption fees are 1.5% if held less than 7 days, and 0% if held 7 days or more, with no sales service fee. The C class has no subscription fee, a redemption fee of 1.5% if held less than 7 days, and 0% otherwise; sales service fee is 0.3%.

Risk warning: Huabao Non-Ferrous Metals ETF tracks the CSI Non-Ferrous Metals Index, which was launched on 2013.12.31 and published on 2015.7.13. Its performance over the past five full years was: 2021, +35.89%; 2022, -19.22%; 2023, -10.43%; 2024, +2.96%; 2025, +91.67%. The index’s composition is adjusted periodically according to the rules. Past performance does not predict future results. The constituent stocks shown are for illustration only; stock descriptions are not investment advice and do not reflect any holdings or trading activity of the fund manager’s funds. The fund’s risk level is assessed as R3—medium risk, suitable for balanced (C3) and above investors. Suitability opinions are subject to sales institutions. All information in this article (including stocks, comments, forecasts, charts, indicators, theories, and any other statements) is for reference only. Investors are responsible for their own investment decisions. The views expressed do not constitute investment advice, and the fund manager is not responsible for any losses caused by reliance on this content. Fund investments carry risks; past performance is not indicative of future results, and performance of other funds managed by the same manager does not guarantee future results. Invest cautiously.