Scarce resource sector differentiation, chemicals relatively resilient to declines, institutions optimistic about chemical profitability recovery opportunities

GateUser-bd883c58 · 2026-03-24T20:07:31+00:00

Anti-involution measures are expected to drive a recovery of profitability lows in the chemical industry, especially in the new materials sector. With downstream demand growing rapidly, the industry may usher in a period of high growth. Meanwhile, the market is showing divergence in the scarce resources sector, and related ETF products are worth paying attention to.

GateUser-bd883c58

2026-03-24 20:07:31

Abstract generation in progress

How can AI-driven anti-inflation measures catalyze the bottom-up recovery of profitability in the chemical industry?

On March 23, the overall A-share market was under pressure, with the scarce resources sector showing mixed performance: the CSI Petrochemical Industry Index was relatively resilient, closing down 0.8%; the CSI Rare Earth Industry Index also weakened, closing down 3.4%.

According to Wind data, as of March 20, 2026, from a valuation perspective:

The CSI Petrochemical Industry Index has a price-to-book ratio of 1.8, with a valuation percentile of 83.4% since its launch in 2009;

The CSI Rare Earth Industry Index has a price-to-book ratio of 3.4, with a valuation percentile of 93.8% since 2016.

BOC Securities pointed out that by 2026, capacity expansion in the chemical industry is nearing completion. “Anti-inflation” measures are expected to promote a bottom-up recovery in profitability, while new materials benefiting from rapid downstream demand growth may usher in high growth.

E Fund offers two low-cost ETFs focused on scarce resources:

Chemical Industry ETF (516570): tracks the CSI Petrochemical Industry Index, with over 90% allocation to basic chemicals and oil & petrochemicals;

Rare Earth ETF (159715): tracks the CSI Rare Earth Industry Index, covering the entire industry chain from mining and processing to application.

Risk warning: Funds are subject to risks; investments should be made cautiously.

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