The auto market is warming up + overseas high growth supports the bottom, the entire market's low-fee battery ETF Huaxia (512460) experienced an early morning adjustment.

On April 2, 2026, affected by the implementation of the battery export rebate policy and downward revisions of performance expectations, coupled with net outflows of main industry funds, the Huaxia Battery ETF (512460) experienced early pressure and oscillated for adjustment, currently down 0.62%. Among the constituent stocks, Fulin Precision, Kodeli, and Tianhua New Energy performed well, each rising over 2%; Shouhang New Energy, Sunshine Power, and Kehua Data declined and adjusted.

On the news front, on April 1, several new energy vehicle companies delivered impressive delivery reports, and the new energy vehicle market rebounded strongly in March, which is expected to drive the upstream industry chain—battery sector—to achieve valuation recovery. Additionally, according to the latest data from the China Passenger Car Association, in January-February 2026, China’s lithium battery exports reached $14.2 billion, achieving a year-on-year growth of 46% through diversified market deployment. Among them, the European Union is the core export market, accounting for about 43.1%, with a year-on-year increase of 2.6%. Overall, overseas demand remains resilient, and combined with companies actively expanding overseas markets and the implementation of standardized policies in the battery industry, this is expected to provide dual support for performance and valuation of the battery sector.

Industrial Securities believes that China’s battery recycling policy has moved from the initial and exploratory stages into a phase of improvement. Relevant policies are continuously adjusted to align with industry development characteristics, basically matching current goals and development needs. Experts from China Automotive Data Corporation pointed out that China has a high dependence on imported key metals such as lithium, cobalt, and nickel. As the recycling system for new energy vehicle power batteries is gradually standardized and the scale of recycled metal resources steadily increases, it is expected to effectively reduce reliance on foreign resources in the future and further enhance supply chain security.

The CSI Battery Theme Index closely tracks the battery industry chain, covering multiple links from upstream materials and midstream manufacturing to downstream applications, providing investors with a standardized index tool for deploying this high-growth sector. The management and custody fees for the Huaxia Battery ETF (512460) are only 0.2% in total, the lowest fee rate among similar indices, helping investors to deploy industry investment opportunities at a lower cost.

Daily Economic News