New energy stocks showed strength in early trading on July 27, with lithium battery stocks leading the charge. The ChiNext New Energy Index, which heavily weights lithium battery stocks, opened slightly higher and quickly surged, at one point gaining over 2% before pulling back modestly. Among its components, Sunwoda Electronic Co Ltd rose nearly 7% to lead gains, while DEO Laser Co Ltd, Xinquan Energy, and Haike New Materials each climbed over 4%. CATL and Jinglei Stock rose over 3%.
The popular ChiNext New Energy ETF (159076) was up 1.7% as of press time, leading all 10 ETFs tracking the same benchmark. The fund saw premium trading, with a premium rate of 0.36%, and its daily candlestick chart turned upward, indicating a potential rebound opportunity after the recent oversold conditions. This suggests a short-term bottoming signal may have emerged.
On the news front, CATL plans to repurchase shares worth between 20 billion and 40 billion yuan and cancel them, marking the largest single buyback in A-share history. Additionally, according to data from Baichuan Yingfu, the average price of the electrolyte additive VC (vinylene carbonate) reached 200,000 yuan per ton on July 24, surging over 40% in the past month. On July 23 alone, the price jumped 20,000 yuan per ton, breaching the 200,000 yuan mark for the first time in over four years.
Great Wall Securities noted that the global energy storage market is entering a new cycle focused on enhancing power system flexibility. This recovery is not just a simple rebound in demand but a comprehensive upgrade of business models, competitive landscapes, and value creation methods. The competitive dynamics of the industry have entered a new phase, and the firm recommends focusing on leading companies with strong global channel layouts.
Guosen Securities stated that the new energy and power equipment sectors are showing divergence. Traditional sub-sectors like lithium batteries, wind power, and BC photovoltaic (PV) are seeing positive catalysts at the bottom of their stock prices. Industry fundamentals are steadily improving, and the firm suggests active allocation during market volatility. The lithium battery sector is benefiting from the implementation of consumption taxes and price increases by leading iron-lithium players, which have boosted operating profits. Segments like separators and VC are also benefiting. Wind power bidding is recovering, with state-owned enterprises tendering a cumulative 12.7 GW in July, showing significant year-on-year and month-on-month growth. This suggests potential earnings recovery for leading turbine manufacturers. BC PV technology barriers are rising, and leading companies are seeing reduced losses quarter-over-quarter, validating their alpha advantages.
Seizing the Energy Transformation: Heavy in Lithium Batteries and PV
The ChiNext New Energy ETF (159076) focuses on the mid-to-upstream segments of the new energy sector, offering a one-stop investment in the core tracks of lithium batteries, PV, and wind power. Its top ten holdings account for over 60% of the portfolio and include industry leaders such as Sungrow Power Supply, CATL, Inovance Technology, Eve Energy, and Robotechnik. This positioning allows the fund to better capture the beta returns driven by the convergence of multiple demand forces, including lithium batteries, PV, and new energy vehicles.
Institutional views referenced from: Guosen Securities (20260719) "Power Equipment and New Energy Industry Research"; Great Wall Securities (20260721) "Understanding the Impact of Overseas Subsidies and US-Iran Conflict".
Reminder: Recent market volatility may be significant, and short-term price movements do not predict future performance. Investors should invest rationally based on their own financial situation and risk tolerance, paying close attention to position and risk management.
Risk Warning: The ChiNext New Energy ETF passively tracks the ChiNext New Energy Index, which was established on December 29, 2017, and launched on September 29, 2022. The index's constituent stocks are adjusted according to its compilation rules. Backtested historical performance does not indicate future performance. This product is issued and managed by Hwabao Fund. The distributor does not assume investment, payment, or risk management responsibilities for the product. Investors should carefully read fund legal documents such as the "Fund Contract," "Prospectus," and "Fund Product Information Summary" to understand the fund's risk and return characteristics and choose a product suitable for their risk tolerance. The fund manager rates this fund as R4-Medium to High Risk, suitable for investors with an aggressive (C4) or higher risk profile. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. Past performance does not indicate future results. Funds carry risks; invest with caution! Sales institutions (including the fund manager's direct sales and other sales institutions) will conduct risk assessments of this fund based on relevant laws and regulations. Investors should promptly review the suitability opinions issued by the fund manager. The suitability opinions of various sales institutions may not be consistent, and the risk rating results of fund products issued by the fund manager shall not be lower than those of the fund manager. The risk-return characteristics and risk level of the fund in the fund contract may differ due to different considerations. Investors should understand the fund's risk and return, carefully select fund products based on their investment objectives, time horizon, experience, and risk tolerance, and bear the risks themselves. The registration of this fund by the China Securities Regulatory Commission does not imply a substantive judgment or guarantee of the fund's investment value, market prospects, or returns. Funds carry risks; invest with caution.
MACD golden cross signal forms, these stocks are performing well!