The new energy sector remains strong, and the Huaxia Battery ETF (512460) is rising against the trend.

SadMoneyMeow · 2026-03-23T07:37:45+00:00

Early in the trading session, the A-share market opened lower, with the Huaxia Battery ETF rising 0.5%. Geopolitical tensions are promoting the replacement of traditional energy sources with renewables, as sales of energy storage batteries increased by 53.8% year-over-year, leading to an increased market share. The conflict between the US and Iran is accelerating the shift of overseas data centers toward battery systems, thereby expanding the domestic energy storage market. The valuation of the battery index is reasonable and presents investment opportunities.

SadMoneyMeow

2026-03-23 07:37:45

Abstract generation in progress

Early trading saw the A-share market open sharply lower. By 10 a.m., the Huaxia Battery ETF (512460) rose into the green, up 0.5%. Holdings such as Fulin Precision, Tianhua New Energy, Tianneng Holdings, and Rongbai Technology all gained over 3%.

From an event perspective, geopolitical tensions have driven the logic of renewable energy substitution higher, with energy storage emerging from a supporting role in the battery industry to a leading one. In January-February 2026, China’s cumulative sales of power and energy storage batteries reached 262.0 GWh, a year-over-year increase of 53.8%. Power batteries accounted for 67.6%, and energy storage batteries for 32.4%. Compared to the same period last year, the share of energy storage batteries increased by 8.6 percentage points. As photovoltaic and wind power installations grow, the grid’s demand for energy storage becomes increasingly urgent. Meanwhile, emerging scenarios such as data centers and industrial and commercial energy storage are continuously developing. Against the backdrop of rising oil prices due to the US-Iran conflict, overseas data centers are accelerating the phase-out of diesel generators in favor of battery backup systems. This trend opens a new growth market for domestic energy storage batteries.

Related ETF: Huaxia Battery ETF (512460), tracking the CSI Battery Theme Index (abbreviated as CS Battery).

In terms of constituent stocks and industry distribution, the index is highly focused on core battery sectors, with a complete industry chain coverage and notable diversification, forming an ecosystem from raw materials to end-user applications. Key holdings include resource companies (such as Tianqi Materials, GEM, Duofuo), leading cell manufacturers (such as CATL, EVE Energy), equipment suppliers (such as XianDian Smart), and battery system management firms (such as Sungrow and Sanhua Intelligent Control).

Regarding concept exposure, the CS Battery Index concentrates on numerous battery-related themes, allowing investors to follow hot topics through the index. Lithium battery concepts account for 61.2%, energy storage concepts for 55.7%, and solid-state battery concepts for 45.3%.

In terms of valuation, the latest PE-TTM of the index is 32.44 times, placing it at the 34.21% percentile over the past 10 years. Compared to technology indices with P/E ratios in the dozens or even hundreds, the battery theme index is relatively reasonable and has investment appeal.

Daily Economic News

(Edited by: Zhang Xiaobo)

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