As of 9:33 AM on November 10, the Chemical ETF (516020) showed strong performance, with its price rising 2.2% intraday. Trading volume reached ¥32.72 million, and the fund's latest AUM stood at ¥2.753 billion.
Among its constituents, Luxi Chemical and Do-Fluoride New Materials led gains, soaring 9.35% and 9.13%, respectively, nearing daily limit-ups. Huagao Holding followed closely with a 6.06% increase. Conversely, Yangnong Chemical and Sanse Group underperformed, declining 1.17% and 0.86%, while Kingfa Technology dipped slightly by 0.26%.
Catalysts include the recent PTA industry symposium co-hosted by MIIT and the Petrochemical Federation, addressing "internal competition" risks and stabilizing sector operations. This may drive price-spread recovery in PTA segments. Additionally, synthetic biology breakthroughs—fueled by lower bio-based material costs and non-grain feedstock tech—could trigger demand surges, with some index components already investing in this space.
Donghai Securities highlights structural supply-side optimization in basic chemicals, supported by domestic anti-overcapacity policies and overseas plant closures due to rising Asian competition. China’s cost-tech advantages are filling global supply gaps, potentially reshaping the industry. Subsectors like pesticides and fluorochemicals show robust profit growth, while silicones and soda ash lag. Long-term optimism (supply improvements + low prices) contrasts with short-term caution (oil price declines + bottoming prices), with turning points tied to policy shifts and overseas demand recovery.
BOCI Securities notes the basic chemical sector’s P/E of 24.39x (72nd percentile historically) and P/B of 2.21x (54th percentile), sensitive to tariffs and crude volatility. It recommends focusing on sub-sectors aligned with the 15th Five-Year Plan, undervalued leaders, and electronic materials firms. Medium-to-long-term opportunities include policy-driven demand recovery, semiconductor/new energy materials, and high-growth areas like fluorochemicals and agrochemicals. Current trends show rebounding Vitamins A/E prices but falling methionine, with mixed chemical price movements.
The Chemical ETF (516020) and its feeder funds (Feeder A: 012537; Feeder C: 012538) track the Sub-Index Chemicals Index, whose top holdings are Wanhua Chemical, Salt Lake Potash, Tinci Materials, Juhua Group, Tibet Summit Resources, Kingfa Technology, Baofeng Energy, Huagao Holding, Hengli Petrochemical, and Yuntianhua.
Data sourced from SSE/SZSE and public filings.
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