The nonferrous metals sector showed resilience with an active performance against the market trend. On December 10, the Nonferrous Metals Leaders ETF (159876), which tracks industry leaders, surged 1.11% to close at its daily high. Notably, the ETF recorded a net inflow of 54.6 million shares, reflecting strong investor confidence in the sector’s future performance.
In fact, the ETF has seen continuous net inflows over the past two days, totaling 54.3 million yuan. Over the last 20 days, it has attracted a cumulative 243 million yuan. As of December 9, the ETF’s latest size stood at 748 million yuan, making it the largest among three ETFs tracking the same index in the market.
Breaking down the sector, Yunnan Chihong Zinc & Germanium, China’s leading germanium producer with a complete industrial chain, led gains with over 6% growth, driven by demand for low-orbit satellite networks and space solar cell projects. Benefiting from the lithium battery sector’s strength, Shenzhen Chengxin Lithium Group rose nearly 6%. Gold stocks also performed well, with Shandong Gold International and Sichuan Gold climbing over 3% and 2%, respectively. Heavyweights like Zijin Mining and Aluminum Corporation of China also gained over 1%.
Macro-wise, the U.S. Federal Reserve is set to announce its latest interest rate decision at 3:00 AM Beijing time on December 11 after a two-day policy meeting. According to CME’s FedWatch Tool, there is an 87.6% probability of a 25-basis-point rate cut. China Securities (CSC) noted that as long as the Fed remains in a rate-cutting cycle, nonferrous metals prices are likely to continue rising.
On the industrial front, the lithium battery sector strengthened, with lithium miner Shenzhen Chengxin Lithium Group rising nearly 6%. Preliminary December production data for the lithium battery supply chain showed battery output at 143.3 GWh, up 2.3% month-on-month. Huatai Securities expects further production increases and price hikes due to improving capacity utilization.
CSC highlighted that amid heightened macroeconomic volatility and geopolitical tensions in Q4, nonferrous metals—supported by supply-demand rigidity, policy tailwinds, and safe-haven appeal—have become a core asset for long-term allocation. Looking ahead, tight mine supply, green energy transitions, and monetary system restructuring are expected to drive sustained price growth.
**Cyclical Uptrend: "Nonferrous Bull Run" May Continue** Given varying drivers and cycles across metals, diversification is key to capturing sector-wide beta returns. The Nonferrous Metals Leaders ETF (159876) and its feeder funds (Class A: 017140; Class C: 017141) provide broad exposure to copper, aluminum, gold, rare earths, and lithium, offering risk diversification compared to single-metal investments.
*Risk Disclosure: The ETF passively tracks the CSI Nonferrous Metals Index (base date: Dec 31, 2013; launch date: Jul 13, 2015). Past annual returns: 2020: +35.84%; 2021: +35.89%; 2022: -19.22%; 2023: -10.43%; 2024: +2.96%. Index composition may change per rules; historical performance does not indicate future results. Constituent stock mentions are illustrative and not investment advice. Fund risk rating: R3 (moderate), suitable for balanced (C3) or higher-risk investors. Investment decisions carry risks; past performance doesn’t guarantee future returns.*
