Driven by geopolitical tensions between the U.S. and Iran, spot gold extended its rally for the fourth consecutive day on March 2, surpassing $5,300 per ounce. The Nonferrous Metals ETF (159876), which tracks leading companies in the nonferrous metals sector, demonstrated strong activity against the broader market trend. Its intraday price rose by over 1.2%, and is currently up 0.8%. As of the latest update, the ETF recorded a net subscription of 7.8 million units.
Among the constituent stocks, Guangxi Huaxi Nonferrous Metal Co.,Ltd. hit the daily limit up, reaching a new historical high. Hunan Gold surged more than 9%, while China Rare Earth Resources & Technology Co., Ltd. gained over 8%. Other advancing stocks included Yunnan Tin Co., Ltd., Xiamen Tungsten Co., Ltd., Hunan Silver Co., Ltd., and Baiyin Nonferrous Group Co., Ltd.
Industry insiders suggest that the escalation of U.S.-Iran tensions may further boost safe-haven demand, driving up prices of precious metals. Additionally, replenishment of weapon inventories and strategic stockpiling by various nations for security purposes are expected to significantly increase demand for strategic metals such as tungsten, molybdenum, antimony, rhenium, uranium, tantalum, beryllium, titanium, and germanium, which play crucial roles in defense and military applications.
China Securities Co., Ltd. pointed out that after the Spring Festival holiday, while gold and tin have shown notable gains due to geopolitical factors, most domestic nonferrous metals have been trading in a range, awaiting further signals from downstream consumption. On one hand, downstream industries are gradually resuming operations after the Lantern Festival, which will clarify inventory trends. On the other hand, approximately 7 million tons of electrolytic aluminum production in six Middle Eastern countries, particularly nearly 800,000 tons in Iran, face risks related to raw material supply and finished product exports. Given the limited global aluminum inventory resilience, aluminum prices are expected to trend upward.
The Nonferrous Metals ETF HuaBao (159876) and its feeder funds (Class A: 017140, Class C: 017141) track a comprehensive index covering sectors such as copper, aluminum, gold, rare earths, and lithium. The ETF spans various cycles, including precious metals (safe-haven), strategic metals (growth), and industrial metals (recovery), offering broad exposure to capture beta opportunities in the sector. Additionally, the ETF is eligible for margin trading, making it an efficient tool for investing in the nonferrous metals sector.
Note: The Nonferrous Metals ETF HuaBao (159876) was previously known as the Nonferrous Metals Leaders ETF.
Caution: Recent market volatility may be significant, and short-term price movements do not indicate future performance. Investors should make rational investment decisions based on their financial situation and risk tolerance, paying close attention to position and risk management.
ETF Fee Information: Subscription and redemption agents may charge a commission of up to 0.5% when investors subscribe or redeem fund units. Trading fees for on-market transactions are subject to the rates set by securities firms. The ETF does not charge a sales service fee.
Feeder Fund Fee Information: For the HuaBao CSI Nonferrous Metals ETF Feeder Fund (Class A), the subscription fee is 1% for amounts below RMB 1 million, 0.6% for amounts between RMB 1 million and RMB 2 million, and a flat fee of RMB 1,000 for amounts of RMB 2 million or more. The redemption fee is 1.5% for holdings under 7 days and 0% for holdings of 7 days or more. No sales service fee is charged. For the HuaBao CSI Nonferrous Metals ETF Feeder Fund (Class C), there is no subscription fee. The redemption fee is 1.5% for holdings under 7 days and 0% for holdings of 7 days or more. A sales service fee of 0.3% applies.
Risk Disclosure: The Nonferrous Metals ETF HuaBao passively tracks the CSI Nonferrous Metals Index, which has a base date of December 31, 2013, and was launched on July 13, 2015. The index's performance over the past five full years is as follows: 2021: 35.89%; 2022: -19.22%; 2023: -10.43%; 2024: 2.96%; 2025: 91.67%. The index constituents are adjusted according to its rules, and past performance does not guarantee future results. The mention of constituent stocks is for illustrative purposes only and does not constitute investment advice or reflect the holdings or trading activities of the fund manager. The fund manager has rated this fund as R3-medium risk, suitable for balanced (C3) and higher risk-tolerance investors. Suitability assessments are subject to the standards of selling institutions. All information provided is for reference only, and investors are responsible for their investment decisions. The views, analyses, and forecasts presented do not constitute investment advice, and no liability is accepted for any direct or indirect losses resulting from the use of this content. Fund investments carry risks; past performance does not indicate future results, and the performance of other funds managed by the fund manager does not guarantee the performance of this fund. Invest with caution.
A golden cross signal has formed in the MACD indicator, indicating positive momentum for certain stocks.
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