Non-ferrous Metal ETF Huaxia surged 6.43% during trading, with institutions optimistic about the oversold rebound opportunity in the non-ferrous metal sector.

Why do small metals have greater allocation value during oversold rebounds?

On April 8, 2026, the China Securities Segmented Nonferrous Metals Industry Theme Index (000811) surged 6.15%, with holdings in Western Gold, Industrial Silver Tin, and Hunan Gold hitting the daily limit. Stocks like Bowe Alloys and Luoyang Molybdenum also rose in tandem. As of 13:56, the nonferrous metals ETF Huaxia (516650) increased 6.43%, with the latest price at 2.07 yuan.

In terms of news, the U.S. agreed to a two-week ceasefire with Iran in exchange for the reopening of the Strait of Hormuz, easing geopolitical tensions and directly boosting market sentiment. Additionally, official data shows that the manufacturing PMI in March rose to 50.4%, returning to expansion territory. Moreover, the total profits of large-scale nonferrous metal enterprises in January and February increased by 133.5% year-on-year, indicating a strong industry fundamentals.

Huatai Securities is optimistic about the oversold rebound opportunities in the nonferrous metals sector: Regarding gold, historical patterns show that after geopolitical conflicts end, prices tend to rebound quickly, supported by continuous central bank purchases providing a bottom support; for industrial metals, copper supply remains tight at the mine level and domestic inventories are being destocked, while Middle Eastern aluminum capacity risks are not fully priced in, with fundamental support still in place; for small metals, varieties like rare earths, tungsten, molybdenum, and cobalt are catalyzed by geopolitical conflicts, with ongoing strengthening of strategic reserves and military procurement expectations. Supply is highly concentrated domestically, and external shocks are hard to replace, making these metals more resistant to declines and more valuable for medium-term allocation. Overall, the repair opportunities after overselling are worth actively monitoring.

Data shows that as of March 31, 2026, the top ten weights of the China Securities Segmented Nonferrous Metals Industry Theme Index (000811) are Zijin Mining, Luoyang Molybdenum, Northern Rare Earth, China Aluminum, Huayou Cobalt, Ganfeng Lithium, China Gold, Shandong Gold, Chifeng Gold, and Yunnan Aluminum, accounting for a total of 50.78% of the top ten weights.

Nonferrous metals ETF Huaxia (516650), off-exchange connect A: 016707; Connect C: 016708; Connect D: 021534