The chemical sector is rising, with the Guotai Chemical ETF (516220) up over 3%. Changes in the industry supply and demand landscape are expected.

Tianfeng Securities points out that the chemical industry’s new capacity is entering the release phase, and a supply-demand reversal is expected by 2026. On the supply side, the weight of industry supply-demand adjustments is increasing, and the proposal of “countering involution” provides expectations for subsequent industry profit improvement and healthier long-term development. In the short term, supply-demand balance can be adjusted through controlling startup methods to promote price recovery and profit restoration; in the medium to long term, attention should be paid to the implementation pace of shutting down inefficient capacity to promote technological upgrades and escape homogeneous competition. Under the series of policies such as “countering involution” and “stabilizing growth” in 2026-2027, the probability of the economy emerging from the bottom and corporate profits bottoming out is relatively high. The restructuring of supply-demand patterns and the upgrading of industry attributes jointly lead to a reassessment of the value of traditional chemical companies.

Guotai Chemical ETF (516220), tracking the Sub-Industry Chemical Index (000813), selects listed companies involved in chemical raw materials, chemical products, and other fields from the Shanghai and Shenzhen markets as index samples to reflect the development status of China’s chemical industry sub-sectors. The index components cover multiple sub-industries such as pesticides, fertilizers, and coatings, aiming to capture the performance of enterprises with growth potential and market competitiveness.

Risk Reminder: Mentioned individual stocks are only for industry event analysis and do not constitute any stock recommendation or investment advice. Short-term fluctuations of the index are for reference only and do not represent future performance, nor do they constitute a promise or guarantee of fund performance. Views may be adjusted according to market environment changes and do not constitute investment advice or commitments. The risk and return characteristics of the funds mentioned vary; investors are advised to carefully read the fund legal documents, fully understand the product features, risk levels, and income distribution principles, and choose products that match their risk tolerance, investing cautiously.

Daily Economic News