Leading companies' mid-year reports show positive expectations; the underlying index of the E Fund Rare Earth ETF (159715) rose by 2.38%

As of 13:01, the CSI Rare Earth Industry Index (930598) rose by 2.38%. Among heavyweight stocks, Northern Rare Earth increased by 2.48%, Xiamen Tungsten by 0.89%, Lingyi iTech by 0.25%, Shenghe Resources by 1.52%, China Rare Earth by 1.09%, Goldwind by 3.71%, GRINM Advanced Materials by 2.07%, Baotou Steel by 3.24%, GEM by 3.74%, and Shengxin Lithium Energy hit the daily limit up.

The E Fund CSI Rare Earth ETF (159715) tracks the CSI Rare Earth Industry Index and has attracted significant capital interest, with a cumulative net inflow of 179 million RMB over the past six months.

On the policy front, relevant authorities have recently strengthened enforcement of export controls on strategic minerals, clarifying 13 types of illegal and non-compliant behaviors and launching a reporting platform to complete the full-chain control system covering 'catalog management - reserve system - export control - law enforcement accountability'.

In terms of performance, boosted by improving downstream demand and stronger rare earth product prices, several A-share rare earth companies have significantly increased their H1 profit forecasts. Specifically, Northern Rare Earth expects its H1 net profit attributable to shareholders to reach between 1.98 billion and 2.06 billion RMB, representing a year-on-year increase of 112.74% to 121.33%; Zhongxi Nonferrous expects its H1 net profit attributable to shareholders to be between 370 million and 430 million RMB, a year-on-year surge of 410.35% to 493.11%.

Nanjing Securities pointed out that the price of praseodymium-neodymium oxide recently rose by 1.9% to 765,800 RMB per ton, while neodymium-iron-boron prices remained stable at 230 RMB per kilogram. Investors are advised to focus on leading rare earth permanent magnet enterprises. With continuous investment in AI computing infrastructure, rigid demand for high-end magnetic materials is strengthening. Coupled with supply-side policy constraints and low inventory levels, prices for both light and heavy rare earths are expected to receive synchronized support.

The E Fund CSI Rare Earth ETF (159715) closely tracks the rare earth industry index, focusing on national strategic resources and laying out a layout of global advantageous industrial chains. With management and custody fees of 0.15% + 0.05%/year, it is significantly lower than similar products linked to the CSI Rare Earth Industry Index, making it a high-quality tool for seizing opportunities in the rare earth industry market!

The management fee for the E Fund CSI Rare Earth ETF (159715) is 0.15%, the custody fee is 0.05%, and the comprehensive fee rate is 0.2%. The lower fee structure can effectively reduce cost expenditures for investors.

E Fund Asset Management is a leading comprehensive asset management institution in China, with over 20 years of professional accumulation in index investment. Its index product line comprehensively covers mainstream broad-based indices, involving multiple sector indices, covering cross-border and cross-market indices, reaching more than 10 exchanges globally. Its professional index research and investment team possesses rich experience in product design and investment management.