Core Insights - The China Rare Earth Industry Index has decreased by 1.58% as of October 22, 2025, with mixed performance among constituent stocks, led by Shengxin Lithium Energy with a rise of 1.81% [1] - The recent tightening of rare earth export controls by the Ministry of Commerce is expected to strengthen China's strategic position in the rare earth market, potentially leading to increased prices [3] Group 1: Market Performance - The rare earth ETF, Jiashi, has seen a turnover of 1.52% and a transaction volume of 1.61 billion yuan, with its latest scale reaching 10.875 billion yuan, marking a new high since its inception [2] - Over the past week, Jiashi's shares increased by 5.76 million, leading the comparable funds in terms of new share growth [2] - In the last five trading days, Jiashi has experienced net inflows on four occasions, totaling 2.251 billion yuan [2] Group 2: Fund Performance - As of October 21, 2025, Jiashi's net value has increased by 91.40% over the past two years, ranking 79th out of 2,358 index equity funds, placing it in the top 3.35% [2] - The highest monthly return since inception for Jiashi was 41.25%, with the longest consecutive monthly gain being four months and a maximum increase of 83.89% [2] Group 3: Industry Dynamics - The recent policy changes include increased export controls on five categories of medium and heavy rare earths, as well as restrictions on equipment, technology, and raw materials across the entire industry chain [3] - These measures are expected to complicate the establishment of independent rare earth supply chains overseas, thereby enhancing China's competitive advantage in the long term [3] - The limitations on overseas supply of rare earth magnetic materials are anticipated to boost demand for high-performance ferrite permanent magnets, leading to a significant increase in orders [3] Group 4: Key Stocks - The top ten weighted stocks in the China Rare Earth Industry Index account for 61.96% of the index, with notable performers including Northern Rare Earth and China Rare Earth, which saw declines of 2.69% and 1.81% respectively [2][5]

Core Viewpoint - The rare earth industry is experiencing fluctuations in stock performance, with the China Rare Earth Industry Index down by 0.46% as of July 16, 2025, while the rare earth ETF from Harvest has shown a significant increase of 6.05% over the past week [1][3]. Market Performance - The rare earth ETF from Harvest has a current scale of 2.764 billion yuan, reaching a one-year high, and has a total of 2.193 billion shares, also a one-year high [3]. - The ETF has seen a net inflow of 155 million yuan, with leveraged funds continuously entering the market, achieving a maximum single-day net purchase of 14.38 million yuan [3]. - The top ten weighted stocks in the China Rare Earth Industry Index account for 55.58% of the index, with North Rare Earth and China Rare Earth being the most significant contributors [5][7]. Export and Price Trends - China's rare earth exports reached 7,742.2 tons in June, marking a month-on-month increase of 32.4% and a year-on-year increase of 60%, the highest level since 2009 [3]. - Analysts predict that high overseas prices for rare earths will translate to domestic market increases, especially with the upcoming peak consumption season, leading to expectations of price rises [4]. Investment Opportunities - The rare earth ETF from Harvest has shown a one-year net value increase of 50.35%, ranking in the top 8.59% among comparable funds [3]. - The ETF has recorded a maximum monthly return of 41.25% since its inception, indicating strong performance potential [3].