The ChiNext Index surged over 6%! The rare metals sector was active, with the Huaxia Rare Metals ETF (159053) rising 3.74% during trading.

On July 31, the three major A-share indices rose collectively, with market sentiment significantly warming up. As of 09:58, the ChiNext Index led the market with a gain of 6.71%. The rare metals sector showed active performance, demonstrating strong elasticity. The Huaxia Rare Metals ETF (159053) rose by 3.74% during trading. Looking at the performance of its constituent stocks, several individual stocks led the gains, with Yunnan Germanium hitting the daily limit up, Zhongwu High-Tech rising 9.34%, Xiamen Tungsten rising 8.53%, and Tianhua New Energy rising 5.88%.

Rare metals are hailed as "the vitamins of modern industry." Small rare metals such as lithium, tungsten, molybdenum, and rare earths are less affected by macroeconomic interest rate fluctuations. The core drivers of their market trends are their own industrial cycles and supply-demand dynamics, making them the main source of high-elasticity excess returns in the sector. Among them, the lithium sector has seen a phased valuation repair since July 2026, driven by the steady recovery in demand from downstream new energy vehicles and energy storage. Industry inventory continues to destock, and previously cautious expectations of oversupply are being continuously corrected, with profitability expectations along the industrial chain gradually improving.

Tungsten, molybdenum, and rare earths, as strategic metals, have stronger growth attributes: On the demand side, they are deeply tied to high-growth tracks such as AI electronics, industrial robots, high-end manufacturing, military new materials, and high-performance magnetic materials for new energy, leading to continuous expansion; on the supply side, they are constrained by strict national total volume controls, with rigid constraints on mining and smelting links. Under the resonance of both supply and demand, these varieties continue to show structural market trends independent of the broader market, representing the most prominent core direction in terms of elasticity within the sector.

Related ETFs:

The Huaxia Rare Metals ETF (159053) closely tracks the CSI Rare Metals Theme Index, allowing investors to configure assets in strategic metals 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 management fee plus custody fee for this ETF totals 0.20%, ranking among the lowest in the entire market.