136 billion main force capital sweeps up chemicals! Huabao Fund Chemical ETF (516020) continues in the red, lithium battery and phosphate chemical sectors surge together

The chemical sector continues to fluctuate with gains. The chemical ETF (516020), which reflects the overall trend of the chemical industry, reached a intraday high increase of 2.45%. As of the time of writing, it is up 0.78%.

In terms of constituent stocks, some stocks in the lithium battery, potash fertilizer, and phosphate chemical sectors led the gains. As of the latest update, Enjie Shares surged 6.25%, Salt Lake Shares jumped over 5%, and BlueXiao Technology, Yuntianhua, and Xingyuan Material also saw significant increases.

On the capital side, the basic chemical sector received substantial inflows from major funds. Data shows that as of the latest update, the net inflow of main funds into the basic chemical sector for the day reached 13.679 billion yuan, ranking first among 30 primary industries in the CITIC first-level industry classification.

Regarding news, geopolitical conflicts are still intensifying. Institutions point out that although the pace of conflict is unpredictable, ongoing Strait blockades have indeed raised expectations for the oil price center in 2026. Under this context, products such as coal chemicals, pyrite ore, potash and phosphate fertilizers, and bio-based materials—priced based on oil or related to oil, or using other resources with smaller price fluctuations—are likely to benefit significantly.

Looking ahead, Founder Securities notes that amid current geopolitical conflicts, Europe’s energy costs have surged, which may accelerate the clearing of chemical capacities. The narrative of the east rising and the west declining may continue to strengthen. It is recommended to focus on alternative routes and leading companies in fertilizer sectors.

How to seize opportunities in the chemical sector? Investing through the chemical ETF (516020) may offer higher efficiency. Public information shows that the chemical ETF (516020) tracks the CSI Sub-industry Chemical Industry Theme Index, with oil refining and basic chemicals accounting for over 80% of the total weight. Off-market investors can also consider investing via the chemical ETF connection funds (Class A 012537 / Class C 012538).

Source: Shanghai and Shenzhen Stock Exchanges, etc., as of March 13, 2026.

Note: When investors subscribe or redeem fund shares, the broker agency handling the transaction may charge a commission of up to 0.5%, which includes related fees charged by stock exchanges, registration agencies, etc. The chemical ETF does not charge sales service fees.

The subscription fee for the Chemical ETF Connection A is: under 1 million yuan, 1%; from 1 million (inclusive) to 2 million yuan, 0.6%; above 2 million yuan, a flat 1,000 yuan per transaction. Redemption fees are: within 7 days, 1.5%; from 7 days (inclusive) to 180 days, 0.5%; beyond 180 days, 0%.

The redemption fee for the Chemical ETF Connection C is: within 7 days, 1.5%; beyond 7 days, 0%. The sales service fee rate is 0.2%.

Note: According to Wind data, as of February 27, 2026, based on Shenwan first-level industry classification, the weights of basic chemicals and petroleum refining in the CSI Sub-industry Chemical Index are 71.57% and 11.7%, respectively.

Risk reminder: The chemical ETF passively tracks the CSI Sub-industry Chemical Industry Theme Index, which was established on December 31, 2004, and published on April 11, 2012. The index components are adjusted periodically according to the index rules. Past backtested performance does not predict future results. The individual stocks mentioned are only for objective illustration of index components and are not recommendations. They do not represent the views of fund managers or investment directions. All information in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, or any other expressions) is for reference only. Investors are responsible for their own investment decisions. The opinions, analysis, and forecasts in this article do not constitute investment advice and do not hold the author or publisher liable for any direct or indirect losses caused by using this information. Investors should carefully read the fund contract, prospectus, and other legal documents to understand the fund’s risk-return profile and choose products suitable for their risk tolerance. Past performance does not indicate future results. The performance of other funds managed by the fund manager does not guarantee the performance of this fund. According to the fund manager’s assessment, the risk level of the chemical ETF is R3—medium risk, suitable for balanced (C3) and above investors. Suitability opinions are subject to sales institutions. Sales institutions (including direct sales by fund managers and other sales channels) evaluate the risk according to relevant laws and regulations. Investors should pay attention to the suitability opinions issued by fund managers. The risk ratings provided by sales institutions may vary and must not be lower than the fund manager’s assessment. The fund contract may differ in risk-return characteristics and risk level assessments due to different considerations. Investors should understand the fund’s risk-return profile, consider their own investment goals, time horizon, experience, and risk capacity, and make cautious choices. The China Securities Regulatory Commission’s registration of the fund does not imply any judgment or guarantee of its investment value, market prospects, or returns. Investment in funds should be cautious.