HSBC Research Anticipates Ongoing Support for Copper and Gold Prices from Geopolitical Factors, Reiterates Buy Rating on ZIJIN MINING
ZIJIN MINING Production Plans: ZIJIN MINING announced its mineral production plans for 2026 to 2028, aiming to be among the top three producers of copper and gold by 2035, with copper production targets of 1.09 million tons, 1.2 million tons, and 1.5-1.6 million tons, and gold production targets of 90 tons, 105 tons, and 130-140 tons.
Market Expectations: HSBC Global Investment Research maintained a Buy rating for ZIJIN H-shares and A-shares, with target prices set at HKD58 and RMB51.2, respectively, anticipating that copper prices will remain high due to tight market conditions and geopolitical risks.
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HKD1.4 Billion Net Inflow from Southbound Trading into TENCENT
Southbound Trading Inflows: TENCENT (00700.HK) saw a significant net inflow of HKD1.4 billion, while MEITUAN-W (03690.HK) also had a notable inflow of HKD314.6 million in Southbound Trading.
Southbound Trading Outflows: POP MART (09992.HK) experienced a net outflow of HKD301.1 million, with ZIJIN MINING (02899.HK) and WUXI BIO (02269.HK) also recording substantial outflows.
Short Selling Activity: TENCENT had short selling of $1.61 billion with a ratio of 7.556%, while MEITUAN-W faced $1.88 billion in short selling at a ratio of 24.332%.
Market Overview: Overall, Southbound Trading net outflow totaled HKD0, accounting for 39.70% of the total transaction amount of HKD94.78 billion.
Short Selling Activity Reaches $33.6B, Representing 16.5% of Eligible Securities Turnover at Market Close
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $33.6 billion, accounting for 16.5% of the eligible securities turnover, a decrease from 18% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include Meituan-W, Zijin Mining, Tencent, Xiaomi-W, and Alibaba-W, with short selling ratios ranging from 7.6% to 35.5%.
Meituan-W Performance: Meituan-W had a short selling turnover of $1.88 billion, with a significant short selling ratio of 24.3%, reflecting a decline of 4.5% in its stock price.
Zijin Mining Highlights: Zijin Mining led with the highest short selling ratio at 35.5%, with a turnover of $1.77 billion, while its stock price increased by 3.4%.
Short Selling Activity Reaches $16B, Accounting for 15.3% of Eligible Securities Turnover by Midday
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $16 billion at midday, accounting for 15.3% of the eligible securities turnover, a decrease from 18% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include Meituan-W, Zijin Mining, Tencent, Xiaomi-W, and Alibaba-W, with short selling ratios ranging from 6.8% to 35.2%.
Meituan-W Performance: Meituan-W had a short selling amount of $1.15 billion, with a significant short selling ratio of 31.8%, reflecting a decline of 4.6% in its stock price.
Zijin Mining Performance: Zijin Mining reported a short selling amount of $1.06 billion and the highest short selling ratio at 35.2%, with a slight increase of 1.3% in its stock price.
Citi Thinks Worries About ZIJIN MINING's 3-Year Production Forecast Are Exaggerated, Increases Target Price to HKD51.8
Citi's Inquiries on Zijin Mining: Citi has addressed multiple inquiries regarding Zijin Mining's production guidance, board independence, and shareholder returns, updating its valuation model accordingly.
Target Price Increase: Citi raised the target price for Zijin's H shares from HKD39 to HKD51.8 and for A shares from RMB35.5 to RMB46.6, maintaining a Buy rating for both.
Management Stability: Concerns about increased control by the local SASAC following the former chairman's departure are deemed unfounded by Citi, which believes the management team will continue to operate independently.
Market Context: HSBC Research supports the outlook for Zijin Mining, expecting copper and gold prices to be influenced by geopolitical factors, and also maintains a Buy rating on the company.
ZIJIN MINING Rises Approximately 4% in Early Trading Following Citi's 30%+ Increase in Price Targets and Anticipated Gradual Increase in Dividend Payout Ratio
Stock Performance: ZIJIN MINING opened 2.5% higher at $44.6, peaked at $45.22, and closed at $45.18, reflecting a 3.81% increase with significant trading volume of 34.9337 million shares.
Citi Research Upgrade: Citi Research raised target prices for ZIJIN MINING's A- and H-shares by over 30% each, citing higher gold and lithium prices and increased gold sales, while also projecting a gradual increase in dividend payout ratios starting in 2025.
Investment Rating: The brokerage maintained a "Buy" rating on ZIJIN MINING and designated it as a top pick in the sector, with new target prices set at $51.8 for H-shares and RMB46.6 for A-shares.
Short Selling Data: The short selling for ZIJIN MINING reached $1.03 billion, with a short selling ratio of 29.442%, indicating significant market interest in the stock.
HSI Starts 55 Points Down; NTES-S and BUD APAC Drop; WUXI BIO Rises Sharply
U.S. Employment Data Impact: The U.S. January non-farm payroll data exceeded expectations, leading to a drop in the unemployment rate to 4.3%, which cooled market expectations for a Federal Reserve rate cut. The DJIA closed down 66 points or 0.13%.
Hong Kong Stock Market Performance: The Hong Kong stock market opened weakly, with major indices like the HSI and HSCEI declining by 0.2% and the HSTECH by 0.5%.
Tech Sector Movements: Major tech stocks in Hong Kong, including MEITUAN-W and TENCENT, opened lower, with MEITUAN-W being the worst performer, while BABA-W continued to invest in Taobao despite losses.
Company Earnings and Stock Reactions: NTES-S reported disappointing earnings, leading to a 1.4% drop in its stock, while KNOWLEDGE ATLAS saw a significant increase of 8.8% after launching a new product.
HKD1.4 Billion Net Inflow from Southbound Trading into TENCENT
Southbound Trading Inflows: TENCENT (00700.HK) saw a significant net inflow of HKD1.4 billion, while MEITUAN-W (03690.HK) also had a notable inflow of HKD314.6 million in Southbound Trading.
Southbound Trading Outflows: POP MART (09992.HK) experienced a net outflow of HKD301.1 million, with ZIJIN MINING (02899.HK) and WUXI BIO (02269.HK) also recording substantial outflows.
Short Selling Activity: TENCENT had short selling of $1.61 billion with a ratio of 7.556%, while MEITUAN-W faced $1.88 billion in short selling at a ratio of 24.332%.
Market Overview: Overall, Southbound Trading net outflow totaled HKD0, accounting for 39.70% of the total transaction amount of HKD94.78 billion.
Short Selling Activity Reaches $33.6B, Representing 16.5% of Eligible Securities Turnover at Market Close
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $33.6 billion, accounting for 16.5% of the eligible securities turnover, a decrease from 18% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include Meituan-W, Zijin Mining, Tencent, Xiaomi-W, and Alibaba-W, with short selling ratios ranging from 7.6% to 35.5%.
Meituan-W Performance: Meituan-W had a short selling turnover of $1.88 billion, with a significant short selling ratio of 24.3%, reflecting a decline of 4.5% in its stock price.
Zijin Mining Highlights: Zijin Mining led with the highest short selling ratio at 35.5%, with a turnover of $1.77 billion, while its stock price increased by 3.4%.
Short Selling Activity Reaches $16B, Accounting for 15.3% of Eligible Securities Turnover by Midday
Short Selling Turnover: The short selling turnover in the Hong Kong market reached $16 billion at midday, accounting for 15.3% of the eligible securities turnover, a decrease from 18% on the previous trading day.
Top Short Selling Stocks: The top five stocks with the highest short selling amounts include Meituan-W, Zijin Mining, Tencent, Xiaomi-W, and Alibaba-W, with short selling ratios ranging from 6.8% to 35.2%.
Meituan-W Performance: Meituan-W had a short selling amount of $1.15 billion, with a significant short selling ratio of 31.8%, reflecting a decline of 4.6% in its stock price.
Zijin Mining Performance: Zijin Mining reported a short selling amount of $1.06 billion and the highest short selling ratio at 35.2%, with a slight increase of 1.3% in its stock price.
Citi Thinks Worries About ZIJIN MINING's 3-Year Production Forecast Are Exaggerated, Increases Target Price to HKD51.8
Citi's Inquiries on Zijin Mining: Citi has addressed multiple inquiries regarding Zijin Mining's production guidance, board independence, and shareholder returns, updating its valuation model accordingly.
Target Price Increase: Citi raised the target price for Zijin's H shares from HKD39 to HKD51.8 and for A shares from RMB35.5 to RMB46.6, maintaining a Buy rating for both.
Management Stability: Concerns about increased control by the local SASAC following the former chairman's departure are deemed unfounded by Citi, which believes the management team will continue to operate independently.
Market Context: HSBC Research supports the outlook for Zijin Mining, expecting copper and gold prices to be influenced by geopolitical factors, and also maintains a Buy rating on the company.
ZIJIN MINING Rises Approximately 4% in Early Trading Following Citi's 30%+ Increase in Price Targets and Anticipated Gradual Increase in Dividend Payout Ratio
Stock Performance: ZIJIN MINING opened 2.5% higher at $44.6, peaked at $45.22, and closed at $45.18, reflecting a 3.81% increase with significant trading volume of 34.9337 million shares.
Citi Research Upgrade: Citi Research raised target prices for ZIJIN MINING's A- and H-shares by over 30% each, citing higher gold and lithium prices and increased gold sales, while also projecting a gradual increase in dividend payout ratios starting in 2025.
Investment Rating: The brokerage maintained a "Buy" rating on ZIJIN MINING and designated it as a top pick in the sector, with new target prices set at $51.8 for H-shares and RMB46.6 for A-shares.
Short Selling Data: The short selling for ZIJIN MINING reached $1.03 billion, with a short selling ratio of 29.442%, indicating significant market interest in the stock.
HSI Starts 55 Points Down; NTES-S and BUD APAC Drop; WUXI BIO Rises Sharply
U.S. Employment Data Impact: The U.S. January non-farm payroll data exceeded expectations, leading to a drop in the unemployment rate to 4.3%, which cooled market expectations for a Federal Reserve rate cut. The DJIA closed down 66 points or 0.13%.
Hong Kong Stock Market Performance: The Hong Kong stock market opened weakly, with major indices like the HSI and HSCEI declining by 0.2% and the HSTECH by 0.5%.
Tech Sector Movements: Major tech stocks in Hong Kong, including MEITUAN-W and TENCENT, opened lower, with MEITUAN-W being the worst performer, while BABA-W continued to invest in Taobao despite losses.
Company Earnings and Stock Reactions: NTES-S reported disappointing earnings, leading to a 1.4% drop in its stock, while KNOWLEDGE ATLAS saw a significant increase of 8.8% after launching a new product.
