Editor’s Note
The nonferrous metals sector kicked off the Year of the Horse with a robust rally, highlighted by strong ETF performance and notable capital inflows. This surge reflects growing market optimism and active positioning in the sector.
On the first trading day of the Year of the Horse (February 24), the nonferrous metals sector opened strong and surged significantly. The popular sector ETF—Nonferrous Metals ETF (159876)—saw its intraday price rise over 3.7% at its peak, closing up 3.18%. Notably, the ETF received a net subscription of 6 million units throughout the day, reflecting capital’s optimism about the sector’s future and active buying.
Among constituent stocks, Baiyin Nonferrous and Hunan Silver both hit the daily limit-up. Pangang Vanadium & Titanium and Shengtai Lithium Energy rose over 7%. Yongxing Special Materials, Tongling Nonferrous Metals, Western Gold, and Xingye Silver Tin also saw substantial gains.
According to comprehensive market views, the recent renewed strength in gold and silver is closely related to rising market risk aversion, primarily driven by two factors:
1. **Tariff Disturbances:** Trump’s 10% global tariffs took effect. After the U.S. Supreme Court ruled that the Trump administration’s large-scale tariffs “overstepped authority” and abolished tariff authority, Trump immediately signed an executive order announcing a 10% import tariff on global goods starting February 24, and raised the rate to 15% on the 21st. The power struggle among U.S. leadership over tariff policy has increased dual uncertainties regarding U.S. policy and future economic trends.
2. **Geopolitical Factors:** The volatile U.S.-Iran situation. Current U.S.-Iran negotiations have made no substantive progress, and the U.S. continues to “mass troops” around Iran. Additionally, Israel has again launched airstrikes on Lebanon and is attempting to change the status quo in the West Bank.
*UBS Wealth Management*
*CITIC Securities*
*BOC Securities*
Huabao Nonferrous Metals ETF (159876) and its feeder funds (Class A: 017140, Class C: 017141) track a benchmark index that comprehensively covers industries such as copper, aluminum, gold, rare earths, and lithium, encompassing different cycles like precious metals (safe-haven), strategic metals (growth), and industrial metals (recovery). Full-category coverage allows for better capture of the sector’s beta performance. Additionally, this ETF is a margin trading and securities lending target, making it an efficient tool for one-click allocation to the nonferrous metals sector.