The cyclical economy is on the rise; focus on the ChiNext New Energy ETF (159387) for allocation.

From a macro perspective, the new energy sector has recently seen an internal and external resonance. On the overseas front, ongoing global geopolitical conflicts have kept raising expectations for oil and gas prices. Overall, the development logic for new energy has shifted to energy security, and the economics of energy storage (solar + storage, wind + storage) have become even more prominent. It is expected to accelerate the global energy transition and the export of domestically produced new-energy equipment. Domestically, policy planning has pointed the direction for new energy development. One is the “dual carbon” policy: the “14th Five-Year Plan and 15th Five-Year Plan Outline” states that we should speed up the comprehensive green transformation of economic and social development and build a beautiful China. Another core policy is “computing-power and electricity coordination”: in March 2026, for the first time, computing-power and electricity coordination was written into the Government Work Report, and it was also included in national-level new infrastructure projects. This marks a formal jump in its strategic positioning from the stage of technical exploration to the country’s top-level design. Wind, solar, storage are also important supports for the implementation of computing-power and electricity coordination. Overall, the new energy sector is expected to experience internal and external resonance. Among its sub-sectors, wind, solar, storage, and lithium may benefit across the board; however, among them, energy storage, lithium batteries, and offshore wind may have relatively larger upside elasticity.

Starting from sub-sector opportunities, let’s take a look at investment chances across each segment.

Energy storage: The sector overall is favorable. Behind-the-meter (residential) storage has completed destocking. Multiple overseas countries have restarted subsidies, and in 2026 it is expected to maintain steady growth. In Europe, industrial and commercial energy storage, benefiting from electricity price and policy tailwinds, may ramp up quickly. Large-scale storage in the US, Europe, and emerging markets still has solid demand. In China, supported by policies for capacity-based electricity pricing, investor enthusiasm is high, and the sector has clear catalysts.

Lithium batteries: The industry’s overall demand has resilience. Downstream demand is driven mainly by two engines: energy storage and new-energy vehicles. Domestically, sales of new-energy vehicles are expected to bottom out and stabilize. Overseas, there is regional differentiation: Northern Europe has a leading penetration rate, and subsidies in the UK, Germany, France, and others are being increased, so overseas demand may continue to be released.

Batteries: Battery-side production scheduling remains favorable. In March, battery production scheduling increased significantly both year over year and month over month; in April, it is expected to continue improving. Among the segments, the separator stage has a relatively better landscape and profitability is currently at a low level, giving it some relative advantages. Solid-state batteries may enter a phase of accelerated industrialization in 2026, with relatively dense catalysts: in 2025, the industry chain achieved breakthroughs on both the materials and equipment sides, and pilot production lines were put into operation. In 2026, the focus is likely to be on advancing cell validation, vehicle-mounted road tests, and the bidding for GWh-scale mass production lines, which will speed up the industrialization process. At the same time, solid-state batteries, with advantages such as high safety, high energy density, and a wide operating temperature range, are suited to space scenarios such as low-orbit satellites, opening up new growth space.

Solar PV: Current terminal demand for solar PV remains relatively weak. The key highlight for the sector lies with the team led by Musk: the TERAFAB space computing project is set to be implemented, and solar PV is one of the core supporting components. Tesla and SpaceX plan to build 200GW of solar PV capacity over three years. They have already procured equipment from within China, and orders are being accelerated and rolling out, providing the industry with clear incremental demand and catalysts.

Wind power: Overall, wind power’s fundamentals are expected to be much better than solar PV. On the one hand, wind power generation is more even and stable than solar PV, and many power operators are now inclined to allocate wind power. On the other hand, wind power companies’ profitability is also much better than that of solar PV. The proportion of domestic onshore wind orders delivered at higher prices has increased. Combined with a rising share of offshore wind and exports overseas, it is expected to support OEMs’ profit recovery.

The ChiNext New Energy ETF (159387) index mainly tracks the Innovation Energy Index. The index constituents include companies in the new energy or new-energy vehicle industry. Among them, the new energy industry includes solar, wind, biomass, nuclear power, etc.; the new-energy vehicle industry includes traction batteries, battery materials, charging infrastructure, complete vehicles, motors and motor controls, and so on. As of the end of February 2026, the top ten weight holdings of the ChiNext New Energy are shown in the chart.

Data source: China Securities Index Company Risk disclosure: The above individual stocks are shown for index-weight display only, not recommendations for any individual stock, and do not constitute any investment advice. Time is up to 2026-2-27

From the industry distribution, the ChiNext New Energy Index is mainly composed of segments such as batteries (47%), solar PV equipment (25%), automation equipment (14%), and wind power equipment (3%), covering “wind, solar, storage, and lithium” in one click. From the concept distribution, in the ChiNext New Energy Index, the energy storage allocation is 48% and the solid-state battery allocation is 44%, and the index composition is relatively comprehensive.

Data source: Index Company, Wind. The selection for solid-state battery content is based on stocks overlapping with constituent holdings of the iFind solid-state battery index; the selection for energy storage content is based on stocks overlapping with constituent holdings of the Wind energy storage index. Cutoff date: 2026-2-27. Risk disclosure: China’s stock market operating history is relatively short; past index performance does not indicate future performance.

**In a horizontal comparison: ** There are many indices related to new energy in the market. Among them, ETF-linked products include Innovation Energy, Kechuang Innovation Energy, New Energy Batteries, CS Batteries, and New Energy Batteries.

(1) Innovation Energy vs indices related to new-energy batteries: From the distribution across Shenwan secondary industries, Innovation Energy is more balanced in its allocation, combining lithium batteries + solar PV + wind power. The other indices focus more on the lithium battery field. At the same time, the solid-state + energy storage allocations are relatively balanced, and they have 20cm upside/downside room. Looking at the top ten weight holdings, Innovation Energy has some overlap with other new-energy battery-related indices. The highlight of Innovation Energy, however, is that its solar PV equipment allocation is relatively higher.

(2) Comparing the two 20cm rise/fall indices—i.e., Innovation Energy vs Kechuang Innovation Energy: From the distribution across Shenwan secondary industries, Innovation Energy has more battery allocation, while Kechuang Innovation Energy has more solar PV allocation. From the concept distribution, the energy storage allocation of Innovation Energy is about 48%, clearly leading Kechuang Innovation Energy; the solid-state battery allocation of Innovation Energy is closer to that of Kechuang Innovation Energy. Looking at the top ten weight holdings, Innovation Energy and Kechuang Innovation Energy have no overlapping targets. Innovation Energy has relatively balanced allocation between batteries and solar PV, while Kechuang Innovation Energy is more focused on solar PV equipment.

In terms of elasticity, only Innovation Energy and Kechuang Innovation Energy have the 20cm rise/fall limit, while the other indices have a 10cm rise/fall limit. Moreover, the concentration of the top ten weight holdings in Innovation Energy is also among the highest among all new-energy indices.

Overall, as of end of Feb 2026, in Innovation Energy the energy storage allocation is about 48%, the highest among 20cm new-energy-related indices. The solid-state battery allocation is also fairly good at about 44%. Meanwhile, benefiting from the release of energy storage demand + breakthroughs in solid-state batteries + the space solar PV concept, its overall strength is relatively outstanding.

In a vertical comparison: From this year to March 13, 2026, the Cathay size for the ChiNext New Energy ETF reached 16.34 billion yuan, ranking first among similar products. Both trading value and trading volume are also ranked first; it is the largest in scale and best liquidity among similar ETF products.

One-sentence summary of Cathay’s ChiNext New Energy ETF: 20cm rise/fall limit + one-click full coverage of wind, solar, storage, and lithium. As of March 13, 2026, among the ChiNext New Energy Index, energy storage allocation reaches 48% and solid-state battery allocation reaches 44%. The index composition is relatively comprehensive. We welcome interested investors to position themselves.

Risk disclosure:

Investors should fully understand the difference between fund regular fixed-amount investment plans and savings methods such as single deposit with multiple withdrawals. Regular fixed-amount investment plans guide investors toward long-term investing and are a simple and practical way to average investment costs. However, regular fixed-amount investment plans cannot avoid the inherent risks of investing in funds, cannot guarantee that investors will earn returns, and are not an equivalent wealth-management substitute for savings.

Whether it is stock ETFs/LOF fund products, they are types of securities investment funds with higher expected risk and expected returns. Their expected return and expected risk levels are higher than those of hybrid funds, bond funds, and money market funds.

Fund assets invested in Sci-Tech Innovation Board and ChiNext board stocks will face specific risks arising from differences in investment targets, market systems, and trading rules. Investors are reminded to take notice.

Short-term rise/fall ranges for sectors/funds are listed only as supplementary materials for the article’s analysis viewpoints and are for reference only. They do not constitute any guarantee of fund performance.

Any short-term performance of individual stocks mentioned in the article is for reference only and does not constitute a stock recommendation, nor does it constitute a prediction or guarantee of fund performance.

The above views are for reference only and do not constitute any investment advice or commitment. If you need to buy related fund products, please pay attention to the relevant regulations on investor suitability management, conduct risk assessments in advance, and purchase fund products that match the risk level according to your own risk tolerance. Funds have risk; investment requires caution.

Daily Economic News

(Editor-in-charge: Dong Pingping ）

     【Disclaimer】This article only represents the author’s personal views and is not related to Hexun. Hexun’s website remains neutral regarding the statements and judgment of viewpoints in the text. It does not provide any explicit or implicit guarantee regarding the accuracy, reliability, or completeness of the contents. Please read for reference only, and bear all responsibility yourself. Email: news_center@staff.hexun.com

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