Core Viewpoint - The A-share market experienced fluctuations with the non-ferrous metal sector showing resilience, particularly the Huatai-PineBridge Non-ferrous ETF (159652), which rose over 3% as of 9:50 AM on February 27 [1]. Non-Ferrous Metal Sector Performance - The Huatai-PineBridge Non-ferrous ETF (159652) saw most of its constituent stocks rise, with notable increases such as Xiamen Tungsten rising over 7%, Northern Rare Earth up over 5%, and Luoyang Molybdenum increasing over 4% [3]. - The top ten constituent stocks of the ETF include Zijin Mining, Luoyang Molybdenum, and Northern Rare Earth, with respective weightings of 14.47%, 7.55%, and 5.58% [4]. Tungsten Market Insights - The tungsten market has entered a strong upward trend since the beginning of 2026, with core prices reaching historical highs, driven by supply constraints, recovering demand, and a reassessment of its strategic value [5]. - Industry experts indicate that the tungsten market is currently in a state of supply-demand balance, with low inventory levels supporting prices. The long-term outlook remains positive due to increasing demand from new energy and high-end manufacturing sectors [5]. Precious Metals Outlook - Precious metals continue to attract investment, with India allowing significant funds to allocate more resources to gold and silver, reflecting a rising global demand for hard assets [5]. - The macroeconomic environment, including potential interest rate cuts by the Federal Reserve and increased central bank gold purchases, is expected to support precious metal prices [7]. Industrial Metals Analysis - Industrial metals are supported by supply-demand fundamentals, with a notable recovery in the U.S. manufacturing sector indicated by a January PMI of 52.6, which is significantly above expectations [8]. - The development of emerging industries such as AI and renewable energy is projected to create substantial new demand for industrial metals like copper and aluminum [8]. Investment Strategy for Non-Ferrous Sector - The Huatai-PineBridge Non-ferrous ETF (159652) is highlighted for its comprehensive coverage of various metal sectors, including gold, copper, aluminum, lithium, and rare earths, positioning it to benefit from the ongoing non-ferrous super cycle [9]. - The ETF boasts a high concentration of "gold and copper content," with copper at 34% and gold at 14%, leading the industry in this metric [11]. Performance Metrics - The Huatai-PineBridge Non-ferrous ETF (159652) has demonstrated superior performance metrics, with a Sharpe ratio leading its peers and a lower maximum drawdown compared to similar funds [14]. - The index's price-to-earnings ratio stands at 32.24, reflecting a 41% decrease from five years ago, indicating a favorable valuation relative to its earnings growth [14].

Group 1 - The core point of the article highlights the performance of the Huazhong Nonferrous ETF (512940), which opened with a decline of 0.78% at 1.022 yuan [1] - Major holdings in the ETF include Zijin Mining, which fell by 0.43%, and Ganfeng Lithium, which dropped by 2.00% [1] - The ETF's performance benchmark is the CSI Nonferrous Metals Mining Theme Index, with a return of 3.32% since its establishment on February 4, 2026 [1] Group 2 - The fund is managed by Huazhong Fund Management Co., Ltd., with Xu Zhiyan as the fund manager [1] - Other notable stock performances include Luoyang Molybdenum down 0.35%, Northern Rare Earth up 0.05%, and China Aluminum down 0.82% [1] - The article provides a snapshot of the ETF's performance and its key holdings, reflecting the current market conditions in the nonferrous metals sector [1]

Group 1 - The core viewpoint of the article highlights the performance of the Huabao Nonferrous ETF (159876), which opened with a gain of 0.41% at 1.221 yuan [1] - The major holdings of the Huabao Nonferrous ETF include Zijin Mining, which rose by 0.66%, and Ganfeng Lithium, which increased by 4.44% [1] - The fund's performance benchmark is the CSI Nonferrous Metals Index return, with a total return of 142.70% since its establishment on March 12, 2021, and a one-month return of 1.98% [1] Group 2 - The fund is managed by Huabao Fund Management Co., Ltd., with Chen Jianhua as the fund manager [1] - Other notable stock performances include Luoyang Molybdenum rising by 1.19%, China Aluminum increasing by 1.63%, and Northern Rare Earth decreasing by 0.12% [1] - The article provides a snapshot of the ETF's performance and its key holdings, reflecting the current trends in the nonferrous metals sector [1]

Group 1 - The core viewpoint of the article highlights the performance of the Penghua Nonferrous ETF (159880), which opened with a gain of 1.30% at 2.416 yuan on February 26 [1] - The major holdings of the Penghua Nonferrous ETF include Zijin Mining, which rose by 0.66%, Luoyang Molybdenum, which increased by 1.19%, Northern Rare Earth, which fell by 0.12%, and Huayou Cobalt, which gained 3.39% [1] - Other notable stock performances include China Aluminum rising by 1.63%, Ganfeng Lithium increasing by 4.44%, Yun Aluminum rising by 1.08%, Shandong Gold remaining unchanged, Zhongjin Gold decreasing by 0.60%, and Tianqi Lithium rising by 5.91% [1] Group 2 - The performance benchmark for the Penghua Nonferrous ETF is the National Index of Nonferrous Metals Industry, managed by Penghua Fund Management Co., Ltd. [1] - The fund manager is Yan Dong, and since its establishment on March 8, 2021, the fund has achieved a return of 138.66%, with a return of 3.18% over the past month [1]

Core Viewpoint - The article discusses the performance of the Nonferrous Metals ETF (招商) and its major holdings, highlighting the recent market movements and returns since its inception [1]. Group 1: ETF Performance - The Nonferrous Metals ETF (招商) opened with a gain of 0.78%, priced at 2.444 yuan [1]. - Since its establishment on June 21, 2023, the ETF has achieved a return of 142.14% [1]. - The ETF's one-month return stands at 2.55% [1]. Group 2: Major Holdings Performance - Major holdings include: - Zijin Mining: up 0.66% [1] - Luoyang Molybdenum: up 1.19% [1] - Northern Rare Earth: down 0.12% [1] - Huayou Cobalt: up 3.39% [1] - China Aluminum: up 1.63% [1] - Ganfeng Lithium: up 4.44% [1] - Shandong Gold: unchanged [1] - Yun Aluminum: up 1.08% [1] - Zhongjin Gold: down 0.60% [1] - Zhongmin Resources: up 0.04% [1].

Investment Rating - The report maintains a "Buy" rating for several companies in the non-ferrous metals sector, including Zijin Mining, Luoyang Molybdenum, and Huayou Cobalt, among others [3][5]. Core Views - The report highlights that the U.S. non-farm payroll data for January exceeded expectations, with 130,000 jobs added, leading to a decrease in unemployment to 4.3%. This has resulted in a cooling of interest rate cut expectations [2]. - The report expresses a positive long-term outlook for gold prices, driven by central bank purchases and a weakening U.S. dollar credit [2]. - The silver market is expected to remain weak due to pressure from photovoltaic demand and rising costs in silver paste [2]. Summary by Sections Industry and Stock Performance - The report notes that the SW Non-ferrous Index increased by 1.67% during the week, while the COMEX gold price rose by 1.51% and COMEX silver fell by 0.33% [9][12]. - The report provides a detailed analysis of stock performance, highlighting the top gainers and losers in the non-ferrous metals sector [12]. Base Metals - The report discusses the price movements of various base metals, indicating that aluminum prices have shown a slight decline of 0.63% to $3,091 per ton, while copper prices decreased by 0.98% to $12,932 per ton [14][25]. - It mentions that the domestic aluminum production is expected to decline due to the upcoming Spring Festival, leading to weaker demand [26]. Precious Metals and Minor Metals - The report indicates that gold prices are expected to rise, with the current average price at 1,101.52 CNY per gram, while silver prices have decreased significantly [74]. - It also highlights the ongoing geopolitical tensions affecting precious metal prices, particularly in the context of U.S.-Iran relations [2][78]. Energy Metals - The report emphasizes a clear shortage in the energy metals sector, particularly lithium and cobalt, with expectations for price increases post-holiday due to recovering demand [2][60]. - It notes that the nickel market is likely to see upward price movement due to Indonesia's mining quota policies [2][60]. Company Recommendations - The report recommends several companies for investment, including Zijin Mining, Huayou Cobalt, and China Nonferrous Mining, among others, based on their strong earnings forecasts and favorable market conditions [3][5].

Core Viewpoint - The A-share market has experienced a significant surge, with public equity funds seeing a strong start to the year, as nearly half of these products have reached historical net asset value highs, and over 90% have achieved positive returns [1][2]. Group 1: Market Performance - The A-share market has shown a strong upward trend, with over 3,700 stocks rising and more than 100 hitting the daily limit in the last two days [6]. - The trading volume has increased significantly, surpassing 2 trillion yuan, reaching 2.48 trillion yuan [6]. - The performance of the non-ferrous metal sector has been particularly strong, with a year-to-date increase of 21.94%, and 18 constituent stocks within this sector have seen gains exceeding 50% [3]. Group 2: Fund Performance - Among 4,780 comparable active equity funds, 2,347 have achieved historical net asset value highs this year, representing 49.1% of the total [2]. - Over 90% of active equity funds have recorded positive returns since the beginning of the year, with 149 funds showing gains of over 20% [2]. - The top-performing funds, managed by the same fund manager, have achieved returns of 52.64%, 51.95%, and 46.61% respectively [2]. Group 3: Investment Strategies - Investment strategies are shifting from liquidity-driven to profit-driven, with a recommendation for investors to maintain a contrarian mindset as market leadership may rotate quickly [1]. - The focus on resource-related sectors has provided significant advantages in the current market environment, with many top-performing funds heavily invested in non-ferrous metals and technology stocks [3][4]. - Analysts suggest that the market may stabilize and recover post-Spring Festival, with emerging technologies and value stocks expected to perform well [7].

Investment Rating - The report maintains a "Buy" rating for several companies in the non-ferrous metals sector, including Zijin Mining, Luoyang Molybdenum, and Huayou Cobalt, among others [3]. Core Insights - The report highlights that the U.S. non-farm payrolls exceeded expectations with an addition of 130,000 jobs in January, leading to a decrease in the unemployment rate to 4.3%. This has resulted in a cooling of interest rate cut expectations [2]. - The report expresses a positive long-term outlook for gold prices, driven by central bank purchases and a weakening U.S. dollar credit [2]. - The report notes that silver prices may continue to weaken due to pressure from photovoltaic demand and rising costs in silver paste, indicating a trend towards cheaper metals [2]. Summary by Sections Industry and Stock Performance - The report indicates that the SW Non-ferrous Index rose by 1.67% during the week, while the COMEX gold price increased by 1.51% and COMEX silver decreased by 0.33% [9]. - The report provides a detailed performance analysis of key stocks, with several companies recommended for investment based on their earnings forecasts and valuations [3]. Base Metals - The report discusses the fluctuations in base metal prices, noting that aluminum prices have been under pressure due to high inventory levels and seasonal demand declines as the Chinese New Year approaches [25][26]. - Copper prices experienced volatility, initially rising but later falling due to strong U.S. employment data and cautious market sentiment ahead of the holiday [45]. Precious Metals and Minor Metals - The report states that gold and silver prices have seen fluctuations, with gold averaging 1101.52 CNY per gram, down 0.83% from the previous week, while silver prices fell significantly [74]. - The report emphasizes the ongoing geopolitical tensions and their impact on precious metal prices, with a focus on the potential for price recovery as market conditions evolve [78]. Energy Metals - The report highlights a clear shortage in the energy metals sector, particularly lithium and cobalt, with expectations for price increases post-holiday as demand recovers [9]. - Nickel prices are anticipated to rise due to the implementation of Indonesia's nickel ore export quota policy [9].

Quantitative Models and Construction Methods 1. Model Name: CSI SWS Non-ferrous Metal Index (000819.SH) - **Model Construction Idea**: The index is designed to reflect the overall performance of listed companies in the non-ferrous metal industry on the Shanghai and Shenzhen markets. It includes 50 securities from the SWS non-ferrous metal and non-metal material industries[31][32] - **Model Construction Process**: - **Sample Space**: Securities from the CSI All Share Index sample space listed on the Shanghai and Shenzhen markets[32] - **Selection Method**: 1. Rank securities by average daily trading volume over the past year and exclude the bottom 20%[32] 2. Select securities from the SWS non-ferrous metal and non-metal material industries[32] 3. Rank the remaining securities by average daily total market capitalization over the past year and select the top 50 as index samples[32] - **Sample Adjustment**: If the free-float market capitalization of the index samples is less than 70% of the SWS non-ferrous metal industry, the number of samples can be increased to improve industry representation[32] - **Periodic Adjustment**: The index samples are adjusted semi-annually, implemented on the second Friday of June and December[32] - **Model Evaluation**: The index comprehensively covers all subcategories of the non-ferrous metal field, including precious metals (gold, silver), industrial metals (copper, aluminum), and minor metals (tin, indium), providing broad industry representation[33] --- Model Backtesting Results CSI SWS Non-ferrous Metal Index - **P/E Ratio**: 30.79, at the 41.26% percentile as of February 11, 2026[37][40] - **P/B Ratio**: 4.33, at a historically high percentile[37] - **Net Profit Growth**: - 2024: -1.12% - 2025E: 55.23% - 2026E: 27.81%[40] - **Revenue Growth**: - 2024: 7.38% - 2025E: 8.61% - 2026E: 5.02%[40] - **Average Market Cap**: 1,017.31 billion RMB as of February 11, 2026[43] - **Top 10 Constituents Weight**: 47.89%, with major holdings such as Zijin Mining and CMOC showcasing strong profitability and resource reserves[46] - **Performance Comparison**: - Outperformed the CSI 300 Index in most periods since 2020 - Past 6 months return: 98.55% - Past 3 months return: 30.05% - Past 1 month return: 8.12% - 5-year annualized volatility: 30.63% - 5-year maximum drawdown: -54.27%[50][51] --- Quantitative Factors and Construction Methods 1. Factor Name: Industry Representation Factor - **Factor Construction Idea**: Ensure comprehensive representation of the non-ferrous metal industry by including all subcategories such as industrial metals, rare metals, and precious metals[33] - **Factor Construction Process**: - Weight distribution by industry: - Industrial metals: 52.42% - Rare metals: 29.59% - Precious metals: 14.75%[33] - **Factor Evaluation**: The factor ensures balanced exposure across key sub-industries, enhancing the index's representativeness and diversification[33] --- Factor Backtesting Results Industry Representation Factor - **Weight Distribution**: - Industrial metals: 52.42% - Rare metals: 29.59% - Precious metals: 14.75%[33]

Quantitative Models and Construction Methods 1. Model Name: CSI SWS Non-ferrous Metal Index (000819.SH) - **Model Construction Idea**: The index is designed to reflect the overall performance of listed companies in the non-ferrous metal industry on the Shanghai and Shenzhen markets. It includes 50 securities from the SWS non-ferrous metal and non-metallic materials industry[31][32] - **Model Construction Process**: - **Sample Space**: Securities from the CSI All Share Index sample space listed on the Shanghai and Shenzhen markets[32] - **Selection Method**: 1. Rank securities by average daily trading volume over the past year and exclude the bottom 20%[32] 2. Select securities from the SWS non-ferrous metal and non-metallic materials industry classification[32] 3. Rank the remaining securities by average daily total market capitalization over the past year and select the top 50 as index samples[32] - **Sample Adjustment**: If the free-float market capitalization of the index samples is less than 70% of the free-float market capitalization of the SWS non-ferrous metal industry, the number of index samples can be increased to improve industry representation[32] - **Regular Adjustments**: The index samples are adjusted semi-annually, with implementation on the trading day following the second Friday of June and December each year[32] - **Model Evaluation**: The index covers all subcategories of the non-ferrous metal sector, including precious metals (gold, silver), industrial metals (copper, aluminum), and minor metals (tin, indium). It demonstrates better long-term returns and higher elasticity compared to the CSI 300 Index[33][48] --- Model Backtesting Results CSI SWS Non-ferrous Metal Index - **P/E Ratio**: 30.79 (41.26% percentile as of February 11, 2026)[37][40] - **P/B Ratio**: 4.33 (historically high percentile)[37] - **Net Profit Growth**: - 2024: -1.12% - 2025E: 55.23% - 2026E: 27.81%[40] - **Revenue Growth**: - 2024: 7.38% - 2025E: 8.61% - 2026E: 5.02%[40] - **Average Market Cap**: 1,017.31 billion RMB as of February 11, 2026[43] - **Top 10 Constituents Weight**: 47.89%[46] - **Performance Comparison with CSI 300 Index**: - 2020: 36.31% vs. 27.21% - 2021: 31.31% vs. -5.20% - 2022: -21.69% vs. -21.63% - 2023: -12.67% vs. -11.38% - 2024: 2.19% vs. 14.68% - 2025: 97.48% vs. 17.66% - 2026 YTD: 17.24% vs. 1.81%[51] - **5-Year Annualized Volatility**: 30.63% (vs. 17.79% for CSI 300 Index)[51] - **5-Year Maximum Drawdown**: -54.27% (vs. -45.33% for CSI 300 Index)[51] --- Quantitative Factors and Construction Methods 1. Factor Name: Sector Representation Factor - **Factor Construction Idea**: The factor aims to represent the performance of the non-ferrous metal sector by including securities from all subcategories of the industry, ensuring comprehensive coverage[33] - **Factor Construction Process**: - Weight distribution by subcategories: - Industrial Metals: 52.42% - Rare Metals: 29.59% - Precious Metals: 14.75%[33] - Adjust weights semi-annually to maintain sector representation[32] - **Factor Evaluation**: The factor ensures a balanced representation of the non-ferrous metal industry, capturing the performance of various subcategories effectively[33] --- Factor Backtesting Results Sector Representation Factor - **Weight Distribution**: - Industrial Metals: 52.42% - Rare Metals: 29.59% - Precious Metals: 14.75%[33] - **Top Constituents**: - Zijin Mining: 9.67% - China Molybdenum: 8.06% - Northern Rare Earth: 4.96% - Aluminum Corporation of China: 4.25% - Huayou Cobalt: 4.15%[47]