Group 1 - The non-ferrous metal sector showed active performance on December 3, with the CSI Industrial Non-Ferrous Metals Theme Index rising by 1.66%, and stocks such as Tianshan Aluminum rising over 5% [1] - The Wanji Fund's Industrial Non-Ferrous ETF (560860) increased by 1.70%, with a trading volume exceeding 75 million yuan, and frequent premium trading observed [1] - The Industrial Non-Ferrous ETF (560860) saw a net inflow of over 280 million yuan on the previous trading day, with a circulating scale reaching 6.167 billion yuan and a circulating share of 4.365 billion shares, both hitting historical highs [1] Group 2 - Since November, copper prices have shown resilience, not significantly declining with macro fluctuations, and reached a historical high at the end of November due to factors such as the Chinese copper raw material negotiation group and expectations of interest rate cuts by the Federal Reserve [2] - Analysts predict a potential supply shortage for copper by 2026, driven by frequent disruptions in copper mine supply, expected easing of refined production capacity pressure, and ongoing interest rate cut trades, indicating the possibility of a super cycle for copper prices [2] - Wanji Fund highlights the rise of passive investment and index-based investment as important choices for asset allocation, with a focus on developing market-required tool-type products, including various ETFs covering broad-based, industry themes, Smart Beta, and bonds [2]

- The "CSI Industrial Nonferrous Metals Theme Index" (H11059.CSI) focuses on industrial nonferrous metals, selecting 30 large-cap securities involved in industries such as copper, aluminum, lead-zinc, and rare earth metals to reflect the overall performance of listed companies in this theme. The index uses adjusted free-float market capitalization weighting, with individual sample weights capped at 15%, and the top five samples collectively capped at 60%[24][25][26] - The index is rebalanced semi-annually, with sample adjustments implemented on the next trading day following the second Friday of June and December[25] - The index's top five constituent stocks account for 36.57% of the total weight, while the top ten account for 54.18%, with leading companies like Northern Rare Earth, China Molybdenum, and Aluminum Corporation of China having significant weightage. This concentration enhances the index's sensitivity to price cycles and supply-demand changes in key resources like rare earths, copper, and aluminum[28][29][30] - Compared to other nonferrous metal indices, such as the CSI SW Nonferrous Metals Index, the CSI Industrial Nonferrous Metals Theme Index has lower exposure to energy and precious metals, making it more focused on industrial metals closely tied to macroeconomic cycles. This characteristic provides higher elasticity during manufacturing recovery and economic rebound phases[30][33][34] - Over the backtesting period from January 1, 2021, to November 10, 2025, the index achieved an annualized return of 9.18%, outperforming broad-based indices like CSI 300, CSI 500, and ChiNext Index. However, it also exhibited higher annualized volatility (32.29%) and a maximum drawdown of -61%[35][39][40] - The index's valuation (PE_TTM) has shown a downward trend over the past five years, with a recent recovery driven by market sentiment and sector rebound. As of November 10, 2025, the index's PE ratio stood at 20.41x, at the 68.56th percentile of its five-year valuation range, indicating reasonable investment value amid improving industry fundamentals[41][43][44] - The index's profit scale has grown significantly, with total profits increasing from 46.139 billion yuan in 2020 to 168.052 billion yuan in 2022, representing a compound growth rate of over 90%. After a temporary decline in 2023, profits rebounded in 2024 with a 19.05% year-on-year growth, and further growth is expected in 2025 and 2026[45][47]