Oil prices surge, catalyzing energy transformation! Sungrow Power Supply rises over 4%, Battery ETF Huaxia(159796)rises over 2%! Global power shortage resonance and HALO trading surge, will battery sector Beta arrive?

On March 20, the A-share market experienced volatility, with the new energy sector defying the trend and surging! As of 10:26, the leading battery ETF with the largest scale and the lowest fee tier, Huichuanfu (159796), rose over 2%!

Most of the constituent stocks in the Huichuanfu (159796) battery ETF index surged. EVE Energy and Sungrow Power Supply rose over 4%, Xingwangda up over 3%, CATL up over 2%, Tianci Materials and Lead Intelligent up over 1%, and Greenmei, Yinlun Holdings, and others led the gains.

【Top Ten Constituents of the Huichuanfu (159796) Battery ETF Index】

As of 3:20, the constituent stocks are for display purposes only and do not constitute investment advice.

Recently, the importance of energy security has risen again! Crude oil prices remain high, accelerating energy transition! According to Great Wall Securities, influenced by geopolitical conflicts and other factors, based on the March 13 Bichuan quote, WTI crude oil prices have surged over 50% month-on-month; the blockage of shipping through the Strait of Hormuz has further pushed up port prices. With high oil prices, the penetration rate of new energy is expected to accelerate; according to the Automotive Power Battery Industry Innovation Alliance, from January to February 2026, China’s dynamic storage battery sales totaled 262.0 GWh, a year-on-year increase of 53.8%; SNE data shows that global power battery installations reached 71.9 GWh in January 2026, a 10.7% increase year-on-year; combined with the rapid release of household and large-scale storage demands worldwide, demand for dynamic storage is expected to continue high growth in Q2 2026 compared to the previous quarter.

【Catalysts: Global Power Shortage Resonance and HALO Trading Rise】

Tianfeng Securities states that global HALO trading and North American structural power shortages are driving a systematic reassessment of power solutions. Under the macro resonance of global HALO trading and North American structural power shortages, the entire industry chain of “power-grid-battery” solutions is undergoing a systematic revaluation. Currently, North America’s “structural power shortage” caused by AI computing expansion and re-industrialization is becoming the strongest macro-level reflection of “HALO (Heavy Assets, Low Obsolescence)” trading. In the fast-paced AI wave, power infrastructure, as the physical foundation, has extremely high reset costs and low risk of technological disruption. Therefore, North America’s power shortage has transcended individual industry cycles and has become a core theme in global asset valuation for re-evaluating “hardcore infrastructure.” (Source: Tianfeng Securities, 20260314, “Global Power Shortage Resonance and HALO Trading Rise: Reassessing New Power Systems”)

【Industry Chain: Battery Sector Beta Reached, Price Increases Across Links】

Great Wall Securities points out that on one hand, rising lithium carbonate prices support costs, and downstream demand drives price increases. On February 25, 2026, Zimbabwe’s Ministry of Mines announced the suspension of all mineral and lithium concentrate exports, disrupting supply. Meanwhile, demand enters Q2 peak season. According to the March 16, 2026 Bichuan quote, the market price of battery-grade lithium carbonate has returned above 150,000 yuan/ton. With strong downstream storage demand, the industry chain is expected to enter a price increase cycle. As of March 16, 2026, prices of lithium compounds (LFP, electrolytes, hexafluorophosphate) have all increased year-on-year to varying degrees.

On the other hand, the separator segment may move toward supply-demand balance. On November 30, 2025, Enjie Holdings announced plans to acquire 100% of Zhongke Hualian via share issuance. Zhongke Hualian is one of the domestic manufacturers of lithium battery separator production lines. Enjie is expected to achieve upstream material and equipment integration. The supply of lithium battery separators has concentrated in recent years, and with downstream battery companies increasing cost control, separator prices have fallen, pressuring industry profits. Leading companies’ integration with upstream equipment could realize capacity and technology synergy, while second- and third-tier manufacturers may face further expansion restrictions. Coupled with high downstream demand, separator prices may gradually rise, marking a key point for supply-demand reversal. (Source: Great Wall Securities, 20260319, “Lithium Battery Sector Beta Reached, Price Increases Across Links”)

【How to Strategically Position in the “Upward Trend + Rich Catalysts” Battery Sector?】

The fundamentals and technological catalysts of the battery sector are expected to support continued strong stock performance. However, the entire industry chain is long and complex, with many catalysts, making individual stock investment challenging. It may be better to choose index investment for a “dimensionality reduction” approach to quickly seize the historic explosion opportunity in the battery sector!

ETF investment involves two steps: first, selecting an index that best matches the current explosive growth in energy storage and solid-state batteries; second, choosing an ETF with large scale, good liquidity, and low investment costs.

The Huichuanfu (159796) battery ETF index has a significantly higher energy storage component compared to peers, with a high proportion of solid-state batteries! Currently, the energy storage segment benefits from overseas demand exceeding expectations, with supply-demand dynamics rapidly reversing. The sub-sector’s price increase logic is strong, with energy storage making up 18% of the Huichuanfu (159796) index, far ahead of similar indices, and will fully benefit from the energy storage sub-sector’s explosion! Additionally, as a new technology, solid-state batteries are continuously hot, with huge growth potential. The Huichuanfu (159796) index’s solid-state battery component reaches 45%, fully benefiting from breakthroughs in solid-state battery technology and growth opportunities.

Note: Energy storage includes PV equipment, grid automation, hydropower, and other energy storage devices in the CSI Level 4 industry; solid-state battery content is based on whether constituent stocks include solid-state batteries in popular concept sectors, as of 20260227.

Furthermore, the largest industry weight in the Huichuanfu (159796) index is battery chemicals, accounting for 32%, which is expected to benefit from the overall industry chain recovery driven by upstream material price increases.

Note: Based on Shenwan Level 3 industry classification, as of 20260227.

Compared to the top ten constituent stocks, the Huichuanfu (159796) index focuses on two major sectors: energy storage and power batteries. The third-largest stock is a leading PV inverter company, accounting for 7.8%. Other similar indices do not include this stock. The index also covers global power battery leaders and pioneers in solid-state batteries.

Note: Data from CSI Index official website and Guozheng Index official website, as of 20260227.

The Huichuanfu (159796) index precisely captures three core technological directions: battery materials, power batteries, and energy storage batteries. It has relatively low exposure to energy metals like lithium and cobalt and vehicle manufacturing, reducing the cyclical risks associated with these metals and the consumer attributes of vehicle companies, while proactively focusing on technological iteration and demand explosion drivers.

Currently, the Huichuanfu (159796) ETF is leading in scale and has the lowest fee tier among ETFs tracking the CSI Battery Theme Index. Its management fee is only 0.15% per year, the lowest among peers, aiming to provide investors with a good investment experience! For off-market investment, consider connecting funds (A-shares: 012862; C-shares: 012863) to seize the “second spring” opportunity in the battery sector with one click!

Risk reminder: Funds are subject to risks; investment should be cautious. This material is for promotional purposes only and does not constitute legal advice. China’s fund operation period is relatively short and may not reflect all stages of stock market development. Investment involves risks; fund managers commit to managing and using fund assets honestly, diligently, and responsibly but do not guarantee profits or minimum returns. Past performance does not predict future results. Performance of other funds managed by the fund manager does not guarantee the performance of this fund. Investors should carefully read the fund contract, prospectus, and product summary. The fund manager reminds investors that investment is at their own risk. All funds are classified as high-risk products (R4), suitable for investors with an “aggressive” (C4) risk tolerance or higher, according to the risk level matching rules on Huichuanfu’s official website. When subscribing or redeeming ETF units, authorized brokers may charge a commission up to 0.50%, including related fees from stock exchanges and registries. For other funds, please refer to the respective prospectus and legal documents.

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