Lithium carbonate continues to rise! The turning point in the boom triggers a surge in the chemical industry, with major players approaching 20 billion yuan in acquisitions! Huabao Fund Chemical ETF (516020) surged more than 3% intraday.

The chemical sector surged across the board last Friday (March 27)! The Huabao Chemical ETF (516020), which tracks the overall performance of the chemical sector, traded higher after the open and then continued to fluctuate at a high level throughout the afternoon. During the session, the highest intraday gain for prices within the market reached 3.28%. By the close, it was up 2.74%.

As for constituent stocks, some leading performers were in subsectors such as potash fertilizers, nitrogen fertilizers, and synthetic resins. By the close, Yalu International soared by more than 8%, Salt Lake Shares jumped by more than 7%, and LuXi Chemical, Blu-Sol Technology, Guangdong Hongda, and others were also among the top gainers.

On the funding front, on Friday the chemical sector continued to receive additional capital from leading funds. According to Wind data, by the close, the net inflow of leading funds into the basic chemical sector for the day reached 18.793 billion yuan. Over the past 5 days, the sector’s cumulative attracted amount was even 39.54 billion yuan, with net inflows ranking at the top among the 30 CITIC一级 industry categories.

On the news front, the Zimbabwean government recently announced an indefinite suspension of all exports of lithium spodumene, and so far has not issued any clear implementing details, with the ban’s duration far exceeding market expectations. It is reported that the country is a globally important supplier of lithium resources. This move has significantly intensified the global tightness in the supply of lithium raw materials. As a result, the price of lithium carbonate has shown a steadying and rebound trend.

Some analysts point out that China’s domestic mica mining license issues have not yet been resolved; the probability of resuming operations at the Jianzhiwa lithium mine this year is extremely low. Meanwhile, overseas Zimbabwe’s lithium mine policies have not been finalized, which will affect future raw material supply. On the demand side, new energy vehicle sales have performed poorly, and with the window for rushing exports now closed, investors are worried that off-season or peak-season demand may be weak and could lead to inventory buildup. However, the materials segment is still maintaining full production and full sales, with high operating initiative, and it is expected to provide some support to the lithium carbonate price.

Looking ahead, Kaiyuan Securities said that the turning point in chemical industry sentiment is becoming increasingly clear. Currently, crude oil volatility has already shown a marginal downward trend. Even if high volatility persists in the future in certain phases, the marginal impact on the sector will continue to weaken. After this round of adjustment, most chemical industry leading firms have entered a deep value range, and it is expected that the chemical industry’s cyclical boom may accelerate to arrive. *

How to seize opportunities in the chemical sector? Consider gaining exposure via the Huabao Chemical ETF (516020), which may offer even higher allocation efficiency. Public information shows that the Huabao Chemical ETF (516020) tracks the CSI Subdivided Chemical Industry Theme Index. The combined weighting of the petroleum and petrochemical + basic chemical sectors accounts for more than 80%. Off-exchange investors can also invest in the chemical sector via the Huabao Chemical ETF Index Fund (Connection Fund) (Class A 012537 / Class C 012538).

Source: Shanghai and Shenzhen stock exchanges, etc., as of 2026.3.27.

Note: When investors apply for subscriptions or redeem fund shares, the subscription/redemption agent securities firms may charge commission at a rate of no more than 0.5%, which includes the relevant fees charged by the securities exchanges, registration institutions, etc. The chemical ETF does not charge a sales service fee.

The subscription fee rate for Huabao Chemical ETF Connection A is: 1% for less than 1 million yuan; 0.6% for 1 million yuan (inclusive)–2 million yuan; and for 2 million yuan (inclusive) and above, 1,000 yuan per transaction. The redemption fee rate is: 1.5% for within 7 days; 0.5% for 7 days (inclusive)–180 days; and 0% for 180 days (inclusive) and above.

The redemption fee rate for Huabao Chemical ETF Connection C is: 1.5% for within 7 days; and 0% for 7 days (inclusive) and above. The sales service fee rate is 0.2%.

Note: According to Wind data, based on the申万一级 industry classification, as of 2026.2.27, within the CSI Subdivided Chemical Index, the weight percentages of the basic chemical and petroleum and petrochemical industries were 71.57% and 11.7%, respectively.

Institutional viewpoint source: Kaiyuan Securities, March 22, 2026, Basic Chemical Industry Weekly Report 《Chemicals enter the strike zone; firmly continue to be bullish on the chemical bull market in an all-round way》。

Risk warning: The Huabao Chemical ETF passively tracks the CSI Subdivided Chemical Industry Theme Index. The index base date is 2004.12.31, and it was published on 2012.4.11. The composition of the index constituents is adjusted from time to time according to the compilation rules of the index; its historical back-tested performance does not indicate the index’s future performance. The individual stocks mentioned in the text are only objectively presented for listing purposes as constituents of the index, and do not constitute any recommendation for any stock, nor do they represent the fund manager’s and the fund’s investment direction. Any information mentioned in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, or any form of statements) is only for reference; investors are responsible for any investment actions they decide independently. Also, any opinions, analyses, or forecasts in this article do not constitute any form of investment advice to readers, nor do they assume responsibility for any direct or indirect losses arising from the use of this article’s content. Investors should carefully read the fund legal documents such as the 《Fund Contract》, the 《Prospectus》, and the 《Fund Product Information Summary》, understand the fund’s risk-return characteristics, and select products that fit their own risk tolerance. Past performance of the fund does not predict its future performance; the performance of other funds managed by the fund manager does not constitute a guarantee of the fund’s performance. Based on the fund manager’s assessment, the risk level of the Huabao Chemical ETF is R3—medium risk—which is suitable for investors with a balanced profile (C3) and above; for appropriateness matching opinions, please refer to the sales institutions. Sales institutions (including the fund manager’s direct sales institutions and other sales institutions) conduct risk evaluations of the above fund(s) according to relevant laws and regulations. Investors should promptly pay attention to the appropriateness opinions issued by the fund manager. Appropriateness opinions from different sales institutions do not necessarily match, and the risk level evaluation results of the fund products issued by the fund sales institutions must not be lower than the risk level evaluation results made by the fund manager. Differences exist in the fund contract regarding the fund’s risk-return characteristics and the fund’s risk level due to different factors considered. Investors should understand the fund’s risk-return situation, make a prudent selection of fund products in light of their own investment goals, time horizon, investment experience, and risk tolerance, and bear the risks themselves. The registration of the above fund(s) by the China Securities Regulatory Commission does not mean that it makes any substantive judgment or guarantee regarding the fund’s investment value, market prospects, and returns. Fund investment involves caution.

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