Policy correction combined with energy substitution logic, Huaxia Battery ETF (512460) demonstrates long-term value.

On March 31, 2026, affected by the rollout of the cancellation of export tax rebates and a warming sentiment of overseas risk aversion, the Huaxia Battery ETF (512460) opened weakly. During choppy trading and an adjustment, it fell 0.9%. Component stocks Desay Battery, Yinlun Shares, and Penghui Energy performed well, rising by more than 5%, 3%, and 3%, respectively. Meanwhile, holdings Yiwei Lithium Energy, Tianhua New Energy, and Fuyuan Precision fell and adjusted.

Message front: The notice of the State Administration for Market Regulation published on March 30 about the Anti–Unfair Competition Law of the People’s Republic of China was rolled out. The notice clarified efforts to address “involution-style” competition in industries such as lithium batteries. In addition, with a heavy position, Yiwei Lithium Energy today announced that its subsidiary will invest 6 billion yuan to build a power energy storage battery project. In international news, on March 30, the conflict in the Middle East escalated, international oil prices surged sharply, energy security anxieties intensified, and some U.S.-listed lithium-battery-related targets rose against the trend, strengthening the global energy substitution narrative. With anti-involution measures in parallel with energy storage capacity expansion and the substitution logic driven by high oil prices moving in the same direction, the medium- to long-term growth certainty of the battery industry has been further enhanced.

Hua Yuan Securities believes that although the sales volume of power batteries in the short term is affected by the decline in domestic new-energy vehicle sales, new-energy vehicle export data is relatively impressive. At the same time, the electrification rates for domestic commercial vehicles, heavy-duty trucks, and construction machinery continue to increase, and power battery sales have performed well since the beginning of this year. The cumulative year-on-year growth rate for the power battery market in January and February reached 37.4%. Improved production scheduling in response to favorable lithium-battery demand boosts scheduling in the materials segment on a month-over-month basis. When a peak demand season meets rising costs on the supply side, the battery industrial chain transmits upstream pressure through price increases; we expect that in the future, the lithium battery materials segment may see a profit rebound.

The CSI Battery Theme Index closely tracks the battery industrial chain, covering multiple segments from upstream materials, midstream manufacturing, to downstream applications, providing investors with a standardized tool to position themselves in this high-growth sector. The Huaxia Battery ETF (512460) invests across the entire product market. Its combined management fee and custody fee are only 0.2%, the lowest tier among funds tracking the same index, helping investors capture industrial investment opportunities at a lower cost.

China Securities Journal