Lithium battery production recovery struggles to resist high-level pullback, ChiNext New Energy ETF Huaxia experiences a high-level oscillation and pulls back 5.13%

Why is it difficult to prevent the high-level correction of new energy ETFs despite the recovery of lithium battery production?

On March 24, 2026, the A-share new energy sector collectively entered a period of adjustment. Affected by profit-taking pressure after a continuous rise, as of now, the ChiNext new energy ETF from Huaxia (159368) has fallen by 5.13%. Among its holdings, Junxin Co. has risen by 4.6%, Tianhua New Energy has increased by 4.57%, while major holdings like CATL and Sungrow Power have declined.

On the news front, there is a divergence between the industry’s fundamentals and market sentiment. The lithium battery production data for March remains strong, with several cathode material manufacturers reporting that orders have extended to mid-April. The “old-for-new” policy is boosting downstream demand, and its effects are starting to be transmitted from the end user to the manufacturing side. However, geopolitical conflicts and the rebound of the U.S. stock market have led to short-term divergences in the lithium battery sector, with some funds choosing to cash out. This correction may present some layout opportunities.

Huaxin Securities believes that the global energy allocation model and macro transmission paths have been reshaped, with countries shifting towards “self-control + diversified alternatives.” In the A-share market, three major directions benefit: the demand center for new energy installations is moving up, the strategic status and profitability of energy storage are improving, and the grid and power equipment are entering an accelerated investment cycle.

The ChiNext new energy index mainly covers the new energy and new energy vehicle industries, involving multiple sub-sectors such as batteries and photovoltaics. It is the only new energy sector index on the ChiNext with a 20CM price fluctuation limit. The ChiNext new energy ETF from Huaxia (159368) has high elasticity, with a price increase of up to 20cm; it has the lowest fees, with a total management and custody fee of only 0.2%; and its energy storage content exceeds 74%, aligning with current market hotspots. (Link A: 024419 Link C: 024420)