Driven by the dual wheels of AI and the energy revolution, Rare Metal ETF Huaxia (159053) rose over 3.5% during trading hours.

On July 21, 2026, the A-share market experienced a broad rally, with all three major indices rising collectively. The technology and resource sectors stood out, particularly the rare metals sector, which showed strong momentum. Data as of 13:16 showed that the Huaxia Rare Metals ETF (159053) rose 3.50% intraday, with a trading volume of 13.5355 million yuan. Several of its weighted constituent stocks performed actively, with Huayou Cobatec up 7.04%, Yunnan Germanium up 5.77%, Zhongwu High-Tech up 4.80%, and Xiamen Tungsten up 4.18%. Northern Rare Earth and Ganfeng Lithium also saw varying degrees of gains.

The strong performance of the rare metals sector is driven by the resonance of two core logics: the expansion of AI computing power and the global energy transition. On one hand, the rapid development of the artificial intelligence industry is transmitting demand from chips and optical modules upstream to electronic components, creating robust demand for "computing power metals." SDIC Securities emphasized that high-capacity MLCCs and advanced ceramic substrates required for AI applications need heavy rare earth elements added. The combination of growing demand and supply constraints has jointly pushed up the price center for both light and heavy rare earths. Additionally, rare metals such as tungsten and molybdenum have seen breakthroughs in their application in high-end semiconductor manufacturing. Molybdenum materials, leveraging their superior properties, were introduced into the word line structure of advanced memory chips for the first time, potentially driving reconstruction and iterative demand in related equipment chains.

On the other hand, the accelerated pace of global energy transition has opened up vast long-term demand space for energy metals represented by lithium. Research reports from China Galaxy Securities point out that the lithium sector has fully traversed the bottom of the industry cycle. The acceleration of global energy transition is driving an explosion in long-term energy storage demand, supporting continuous upward trends in lithium demand. The long-term tight balance between supply and demand supports the continued rise in the lithium price center. Meanwhile, against the backdrop of geopolitical conflicts and global supply chain restructuring, rare metals, as indispensable strategic assets for high-end manufacturing, are undergoing fundamental value reshaping, with their strategic status becoming increasingly prominent.

Related ETF: 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 ETF's management fee plus custody fee totals 0.20%, making it one of the lowest fee tiers in the entire market.