The chemical sector surged wildly in the afternoon, with major players accumulating nearly 40 billion yuan in the past 5 days! Huabao Fund Chemical ETF (516020) rose over 3% during the trading session!

The chemical sector continued its strong push this afternoon (March 27). The Huabao Chemical ETF (516020), which reflects the overall trend of the chemical sector, saw its intraday price increase by a maximum of 3.17%, and as of the time of writing, it has risen by 3.06%.

In terms of constituent stocks, some individual stocks in the potassium fertilizer, nitrogen fertilizer, and phosphorus chemical sectors have seen significant gains. As of the time of writing, Yara International, Salt Lake Co., and Luxi Chemical have surged over 8%, while Luan Technology has risen over 6%, and Hebang Biotechnology, Chuanfa Longmang, and Hangyang Co. have also performed well.

On the funding side, major capital continues to flow into the chemical sector. According to Wind data, as of the time of writing, the basic chemical sector has seen a net inflow of major capital reaching 18.8 billion yuan in a single day, with a net inflow of 39.6 billion yuan over the past five days, ranking first among the 30 CITIC primary industries.

In terms of news, domestic battery sample companies reported a month-on-month production increase of 21.93% in March. Cathodes and anodes rose by 23.3% and 16.42%, respectively; membranes and electrolytes increased by 8.7% and 18.78%. Analysts point out that annual demand will continue to benefit from both energy storage (core stocks) and power battery dual demand, indicating a positive trend in lithium battery production demand. There are also predictions that global lithium battery shipments will exceed 2.5 TWh by 2026, with energy storage battery shipments surpassing 900 GWh.

Looking ahead, Zhongyin Securities points out that from a mid-term perspective, the global destocking is nearing its end, and a resonance between replenishment and demand recovery can be expected. Due to the impact of the current energy crisis, global chemical companies have seen a significant decline in operating rates, but the rigid demand at the end has not disappeared, and the industry is currently undergoing a large-scale global destocking cycle. Once geopolitical conflicts ease, the global chemical industry may usher in a certain replenishment market, coupled with market expectations for a recovery in end demand, which may improve the profitability of chemical products.

How to seize opportunities in the chemical sector? Investing through Huabao Chemical ETF (516020) may offer higher efficiency. Public information shows that Huabao Chemical ETF (516020) tracks the CSI Sub-Industry Theme Index for the chemical industry, with a combined weight of over 80% in the petroleum, petrochemical, and basic chemical sectors. Off-exchange investors can also invest in the chemical sector through the Huabao Chemical ETF Connecting Fund (Class A 012537/Class C 012538).

Source: Shanghai and Shenzhen Stock Exchanges, etc., as of 2026.3.27.

Note: When investors subscribe to or redeem fund shares, the brokerage firm acting as an agent for subscription and redemption may charge a commission not exceeding 0.5%, which includes fees charged by the securities exchange, registration agency, etc. The chemical ETF does not charge a sales service fee.

The subscription fee rate for Huabao Chemical ETF Connecting Class A is: under 1 million yuan, 1%; 1 million (inclusive) to 2 million, 0.6%; above 2 million, 1,000 yuan per transaction. The redemption fee rate is: within 7 days, 1.5%; 7 days (inclusive) to 180 days, 0.5%; 180 days (inclusive) and above, 0%.

The redemption fee rate for Huabao Chemical ETF Connecting Class C is 1.5% within 7 days; 7 days (inclusive) and above, 0%. The sales service fee rate is 0.2%.

Note: Wind data shows that according to the Shenwan primary industry classification, as of 2026.2.27, the weight proportions of basic chemicals and petroleum and petrochemical industries in the CSI Sub-Industry Chemical Index are 71.57% and 11.7%, respectively.

Risk Warning: Huabao Chemical ETF passively tracks the CSI Sub-Industry Theme Index for the chemical industry, with a base date of December 31, 2004, and released on April 11, 2012. The composition of index constituent stocks is adjusted in a timely manner according to the index compilation rules, and its historical performance does not predict future index performance. The individual stocks mentioned in the text are only for objective display as constituent stocks of the index and do not serve as any stock recommendations; they do not represent the fund manager’s and fund investment direction. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only, and investors must be responsible for any investment decisions they make independently. Furthermore, any opinions, analyses, and forecasts in this article do not constitute any form of investment advice to readers and do not bear any responsibility for direct or indirect losses arising from the use of this article’s content. Investors should carefully read the “Fund Contract,” “Prospectus,” “Fund Product Information Summary,” and other legal documents of the fund to understand the risk-return characteristics of the fund and choose products that match their risk tolerance. Past performance of the fund does not indicate future performance, and the performance of other funds managed by the fund manager does not guarantee the performance of the fund. According to the fund manager’s assessment, the risk level of Huabao Chemical ETF is rated R3-medium risk, suitable for balanced (C3) and above investors, and suitability opinions should be based on the sales institution. Sales institutions (including direct sales institutions of the fund manager and other sales institutions) conduct risk evaluations of the above funds in accordance with relevant laws and regulations, and investors should pay timely attention to the suitability opinions issued by the fund manager; the suitability opinions of each sales institution may not necessarily be consistent, and the risk grade evaluation results issued by the fund sales institutions shall not be lower than the risk grade evaluation results made by the fund manager. The differences in the fund contract regarding the fund’s risk-return characteristics and risk level arise from different considerations. Investors should understand the risk-return situation of the fund, combine their own investment objectives, duration, investment experience, and risk tolerance to carefully choose fund products and bear the risks independently. The registration of the above funds by the China Securities Regulatory Commission does not indicate a substantive judgment or guarantee of the investment value, market prospects, and returns of this fund. Investment in the fund must be cautious.

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