Friday, September 11, saw equity markets consolidate, with all major A-share indices retreating and the nonferrous metals sector leading the decline. The benchmark index tracked by the Hwabao Nonferrous Metals ETF (159876), which assembles the sector's leading players, gapped down at the open, plunging more than 6.4% intraday before closing 4.04% lower.
Among constituent stocks, Western Superconducting Technologies defied the downturn with a gain of over 3%, Chujiang New Materials rose more than 2%, and Chifeng Gold held in positive territory. On the flip side, copper giants led the losses: Northern Copper hit its daily downside limit, Yunnan Copper tumbled over 8%, and heavyweight names such as Zijin Mining and CMOC Group also pulled back in sympathy with the broader market.
What triggered the sharp selloff in nonferrous metals?
The pullback appears driven by a confluence of factors. First, US PPI data came in above expectations, with energy prices pushing overall inflation higher and stoking renewed bets on Federal Reserve rate hikes. Second, the European Central Bank's 25-basis-point rate increase, combined with growing speculation of a Bank of Japan move, has intensified expectations of tighter global liquidity—a scenario that typically strengthens the US dollar and raises the carrying cost of dollar-denominated metals, applying downward pressure. Third, the White House has yet to finalize its refined copper tariff policy; recent copper price strength was partly built on tariff anticipation, and with the policy timeline slowing, that supporting sentiment has begun to waver.
Hwabao Fund's analysis suggests the day's pullback carries a significant oversold component. The copper tariff deferral appears to be a tactical calculation ahead of the US midterm elections rather than a permanent shelving of the plan. While US inventories have built up cyclically, global total inventories are still declining gradually, and the tight supply-demand balance has not reversed—copper's downside support remains intact. The broad market decline stems primarily from the combination of stronger-than-expected US PPI and overseas rate-hike expectations. However, given that the PPI beat was largely driven by crude oil prices, it would be premature to extrapolate tonight's US CPI outcome directly from that single data point, leaving room for near-term panic to unwind.
Looking ahead, the US CPI inflation report is scheduled for release at 8:30 pm Beijing time tonight (September 11). The data will directly influence the Fed's September policy meeting on September 15-16, and by extension, whether the financial-suppression pressure on nonferrous metals begins to ease.
Hwabao Fund believes the current market turbulence stems primarily from investor caution and sentiment-driven positioning ahead of a critical decision window, rather than any deterioration in industry fundamentals. The firm advises maintaining a rational stance, avoiding emotional trading, and patiently awaiting full resolution of macro uncertainties. In the new market phase following the Fed's September meeting and ahead of the November US midterm elections, the nonferrous sector's valuation recovery and fundamental growth narrative are expected to gradually reassert themselves. Overall, the short-term pullback is consolidating the sector's bottom, and the case for medium-to-long-term allocation value in nonferrous metals remains compelling.
The role of nonferrous metals in the computing era
The Hwabao Nonferrous Metals ETF (159876) and its feeder funds (A-class: 017140, C-class: 017141) track a benchmark index that comprehensively covers industry leaders across copper, aluminum, rare earths, gold, lithium, tungsten, molybdenum, and tin, with top holdings including Zijin Mining, CMOC Group, China Northern Rare Earth, and Aluminum Corporation of China. According to 2026 interim results, all 60 constituent stocks reported profitability, with nearly half posting year-on-year net profit growth exceeding 100%—solid fundamentals providing sturdy support. Moreover, the index holds significantly more constituents than comparable nonferrous indices (which typically contain 30-50 stocks), enabling broader coverage of semiconductor and new materials themes. This makes it a suitable one-click vehicle for investors bullish on both technology and nonferrous metals, offering efficient exposure to the sector's beta.
Source: Shanghai and Shenzhen stock exchanges, as of September 11, 2026. Note: all stocks mentioned are constituent holdings of the Hwabao Nonferrous Metals ETF benchmark index. As of end-August, their weightings were: Western Superconducting Technologies 0.97%; Chujiang New Materials 0.57%; Chifeng Gold 3.33%; Northern Copper 0.62%; Yunnan Copper 1.08%; Zijin Mining 11.14%; CMOC Group 7.12%; China Northern Rare Earth 4.40%; Aluminum Corporation of China 3.31%. Constituent stock descriptions are for illustrative purposes only and do not constitute investment advice or reflect the holdings or trading activities of any fund managed by the firm.
Fee disclosure: For ETF subscriptions and redemptions, authorized agents may charge commissions of up to 0.5%. On-exchange transaction fees are determined by the securities broker. The ETF does not charge sales service fees. For the Hwabao CSI Nonferrous Metals ETF Feeder Fund (A-class): subscription rates are RMB 1,000 per transaction for amounts of RMB 2 million or above, 0.6% for amounts between RMB 1 million and RMB 2 million, and 1% for amounts below RMB 1 million; redemption fees are 1.5% for holdings under 7 days and 0% for holdings of 7 days or more; no sales service fee applies. For the C-class: no subscription fee; redemption fees are 1.5% for holdings under 7 days and 0% for holdings of 7 days or more; sales service fee is 0.3%.
Risk disclosure: The Hwabao Nonferrous Metals ETF passively tracks the CSI Nonferrous Metals Index, which has a base date of December 31, 2013, and was published on July 13, 2015. Index constituent composition adjusts according to index methodology, and historical backtested performance does not guarantee future index results. The fund manager assesses this fund's risk level as R3 (medium risk), suitable for balanced (C3) and above investors; please refer to your sales institution for suitability matching. Any information in this article (including but not limited to stocks, commentary, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors are solely responsible for their own investment decisions. Furthermore, any views, analyses, or forecasts herein do not constitute investment advice to readers, and the publisher assumes no liability for direct or indirect losses arising from use of this content. Fund investing carries risks; past performance does not indicate future returns, and performance of other funds managed by the fund manager does not constitute a guarantee of this fund's performance. Please invest cautiously.
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