Export controls combined with sustained release of AI demand, Rare Metals ETF Huaxia (159053) rose 1.19% during trading hours

As of 11:15 AM on July 27, the rare metals sector showed active performance during trading hours. The Huaxia Rare Metals ETF (159053) rose by 1.30%, with its component stocks showing divergent performance. Specifically, Tianhua New Energy rose 3.74%, Zhongwu High-Tech rose 3.17%, Tianqi Lithium rose 2.73%, Xiamen Tungsten rose 2.15%, while Huayou Cobalt and Ganfeng Lithium both rose 1.53%. Northern Rare Earth increased by 1.10%, whereas Luoyang Molybdenum and Yunnan Germanium experienced some adjustments.

In terms of news, supported by the rigid demand from AI computing infrastructure, tightened supply-side controls, and the release of downstream restocking needs, the prosperity of the rare metals sector continues to climb. On one hand, against the backdrop of global supply chain restructuring and geopolitical games, the strategic asset attributes of rare metals are becoming increasingly prominent. China has listed rare earths, tungsten, lithium, gallium, germanium, etc., as national strategic minerals, with resource controls continuously intensifying, thereby strengthening the rigid constraints on the supply side.

Western Securities believes that regarding policy, China will suspend export restrictions on certain rare earth equipment, raw and auxiliary materials, medium and heavy rare earth items, lithium batteries, and related artificial graphite products within the next year. It is expected that with the easing of export restrictions, metal prices domestically and internationally will converge, and domestic strategic metal prices are likely to rise. In an environment where all countries pursue autonomy in industrial and supply chains, strategic metals and small metals are expected to seize opportunities for a round of valuation reconstruction.

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The Huaxia Rare Metals ETF (159053) closely tracks the CSI Rare Metals Theme Index, allowing investors to configure strategic metal assets such as rare earths, lithium, cobalt, and tungsten with one click, providing a convenient tool for laying out positions in the strategic resources track. The total management fee and custody fee for this ETF amount to 0.20%, which is among the lowest rates in the entire market.