The chemical industry sector fluctuated and pulled up! The price increase of pesticides after going to the warehouse + a ten-year low in the valuation department, and the institution is optimistic about the recovery of the economy!

The chemical sector consolidated in shock today (September 17). The chemical ETF (516020), which reflects the overall trend of the chemical sector, weakened at the opening and then rose. As of press time, the on-site price rose 0.27%.
In terms of constituent stocks, some stocks in the modified plastics, civil explosive products, rubber additives and other sectors were among the top gainers. As of press time,Jinfa Technology has risen by more than 9%,Guangdong Hongda has risen by more than 5%,Tongcheng Xincai andHangyang shares have risen by more than 3%, andShengquan Group andLanxiao Technology have risen by more than 2%.
In terms of funds, the chemical ETF (516020), a popular layout tool in the chemical sector, has continued to receive capital inflows recently. Data shows that as of yesterday, in the past 10 trading days, the cumulative amount of Chemical ETF (516020) exceeded 810 million yuan; in the past 20 trading days, the cumulative net purchase amount of Chemical ETF (516020) exceeded 1.7 billion yuan.
In terms of industry segment news, the pesticide industry continues to destock, and some varieties have begun to increase prices: According to the 2025 semi-annual reports of various companies, the total inventory of Shenwan pesticide sector accounted for 13.94% of total assets on June 30, 2025, which was lower than March 31. It fell by 0.12 pct, and pesticide inventories have continued to fluctuate downward since their peak in September 2023. Donghai Securities pointed out that since 2025, the prices of some pesticide products have risen, which is expected to drive the pesticide industry to recover.
From a valuation perspective, the data shows that as of yesterday's close, the price-to-book ratio of the chemical index sub-segment of the chemical index of the chemical ETF (516020) index was 2.27 times, which was at the low level of 37.18% in the past 10 years. The medium-and long-term allocation cost performance is prominent.
Tianfeng Securitiespointed out that the growth rate of fixed assets in the basic chemical industry has an inflection point in 2023Q4, and the scale of fixed assets will increase year-on-year in 2025Q2. At the end of the second quarter of 2025, the total fixed assets of all/sample listed companies in the basic chemical industry were 14222/1126.8 billion yuan respectively, a year-on-year increase of 14.5%/13.8%, respectively, and the growth rates were +2.6/+2.1pcts respectively compared with 2025Q1. The relative bottom of the chemical sector cycle may have reached, and it is recommended to pay attention to industries with marginal changes in supply and demand.
Zhongyuan Securitiessaid that with the further deepening of anti-corruption rectification in the chemical industry, the situation of duplicate construction of production capacity and disorderly and excessive competition in some sub-industries is expected to ease, ushering in a phased improvement in the economy.In September 2025, it is recommended to focus on the pesticide, silicone, polyester filament, coal chemical and light hydrocarbon chemical industries.
How to seize the opportunity of rebound in the chemical sector? The layout efficiency may be higher through Chemical ETF (516020). According to public information, the Chemical ETF (516020) tracksthe chemical industry theme index of the CSI segment and comprehensively covers all chemical segments. Among them, nearly 50% of the positions are concentrated in leading stocks with large market capitalization, includingWanhua Chemical,Salt Lake, etc., sharing the investment opportunities of the strong and strong; the remaining 50% positions are both in the layout of phosphate fertilizer and phosphorus chemicals, fluorine chemicals, nitrogen fertilizers and other sub-sectors. Stock, fully seize investment opportunities in the chemical sector. OTC investors can also deploy the chemical sector through chemical ETF-linked funds (Class A 012537/Class C 012538).
Picture and data source: Shanghai and Shenzhen Stock Exchanges, etc., as of September 17, 2025. Risk warning: The chemical ETF passively tracks the chemical industry theme index of the China Securities Branch. The base date of the index is 2004.12.31 and the release date is 2012.4.11. The composition of the index's constituent stocks is adjusted in a timely manner according to the index compilation rules. Data shows that the recent five full annual returns of the subdivided chemical index are 2020: 51.68%;2021: 15.72%;2022:-26.89%; 2023:-23.17%; 2024:-3.83%. The composition of the underlying index is adjusted in a timely manner in accordance with the index compilation rules, and its historical performance back test does not predict the future performance of the index.The constituent stocks of the index in this article are for display only. The descriptions of individual stocks are not used as any form of investment advice, nor do they represent the position information and trading trends of any funds under the manager. The risk level of the fund assessed by the fund manager is R3-Medium Risk, which is suitable for investors with an appropriateness rating of C3 (Balanced) and above. Any information appearing in this document (including but not limited to individual stocks, reviews, forecasts, charts, indicators, theories, any form of expression, etc.) is for reference only, and investors are responsible for any independent investment behavior. In addition, any opinions, analysis and predictions contained in this article do not constitute any form of investment advice to readers, nor do they assume any responsibility for direct or indirect losses caused by the use of the content of this article. Fund investment is risky. The past performance of the fund does not represent its future performance. The performance of other funds managed by the fund manager does not constitute a guarantee for the fund's performance. Fund investment must be cautious.