HSBC Research: Commodities Begin Strongly; Copper, Aluminum, and Precious Metals Set for Superior Performance
Market Performance: The CRB metals index surged by 10% at the start of 2026, indicating strong performance in the commodities market, particularly metals.
Investment Focus: HSBC Global Research favors commodities with structural demand and limited supply, highlighting copper, aluminum, precious metals, and battery raw materials.
Driving Forces: The current commodity cycle is supported by four key factors: AI and data centers, electric vehicle (EV) demand, energy storage systems, and themes of de-dollarization and safe-haven demand.
Recommended Stocks: Analysts from HSBC identified six stocks for metals and mining investments, including ZIJIN MINING, Freeport-McMoRan, VALE S.A., Sibanye, Northam Platinum, and Arm Holdings.
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M Stanley's H-shr Focus List: A Research Overview (Table)
Stock Performance Overview: Various stocks are showing mixed performance, with Alibaba (BABA.US) up by 17.8% and CHALCO (601600.SH) increasing by 20.7%, while others like DUALITYBIO-B (09606.HK) and NARI (600406.SH) are experiencing slight declines.
Short Selling Activity: Significant short selling is noted in several stocks, including Tencent (00700.HK) with $1.04B and a ratio of 13.981%, indicating investor skepticism about these stocks.
Earnings Reports: HKEX (00388.HK) has posted strong earnings last quarter, maintaining an "Overweight" rating from JPM, suggesting positive investor sentiment.
Market Trends: The overall market shows a mix of gains and losses, with some stocks like SUNNY OPTICAL (02382.HK) and PING AN (02318.HK) experiencing modest increases amidst varying short selling ratios.
UBS Reveals Top Preferred Companies for Chinese Firms (Table)
UBS Research Report: UBS has released a report highlighting its preferred Chinese companies, all rated as Buy, with new additions including SYTECH, DONGFANG ELEC, and ENVICOOL.
Stock Performance: The report notes significant stock movements, with DONGFANG ELEC seeing a 15.117% increase, while companies like SUNGROW POWER and NetEase experienced declines.
Short Selling Data: The report includes short selling statistics, indicating high short selling ratios for several companies, such as HORIZONROBOT-W and ZIJIN MINING.
Market Insights: Related news from CICC suggests that increasing risks of power outages in Europe and the US may create opportunities for power equipment providers.
<Research>DBS Maintains Buy Rating on ZIJIN MINING (02899.HK), Increases Target Price to HKD55
ZIJIN MINING Performance: DBS Group Research highlights ZIJIN MINING's growth driven by active mergers and acquisitions (M&As) and strong operational capabilities, ranking it fifth in global copper reserves and sixth in gold reserves for 2024.
Cost Efficiency: The company's copper C1 cost decreased by 14% year-over-year to USD0.93 per pound, placing it in the top 20% globally, while maintaining competitive costs among gold miners.
Market Outlook: HSBC Research indicates a strong start for commodities, predicting outperformance for copper, aluminum, and precious metals, which may benefit ZIJIN MINING.
Investment Rating: DBS Group maintained a Buy rating for ZIJIN MINING and raised the target price for its H-shares to HKD55.
HSBC Research: Commodities Begin Strongly; Copper, Aluminum, and Precious Metals Set for Superior Performance
Market Performance: The CRB metals index surged by 10% at the start of 2026, indicating strong performance in the commodities market, particularly metals.
Investment Focus: HSBC Global Research favors commodities with structural demand and limited supply, highlighting copper, aluminum, precious metals, and battery raw materials.
Driving Forces: The current commodity cycle is supported by four key factors: AI and data centers, electric vehicle (EV) demand, energy storage systems, and themes of de-dollarization and safe-haven demand.
Recommended Stocks: Analysts from HSBC identified six stocks for metals and mining investments, including ZIJIN MINING, Freeport-McMoRan, VALE S.A., Sibanye, Northam Platinum, and Arm Holdings.
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%.
M Stanley's H-shr Focus List: A Research Overview (Table)
Stock Performance Overview: Various stocks are showing mixed performance, with Alibaba (BABA.US) up by 17.8% and CHALCO (601600.SH) increasing by 20.7%, while others like DUALITYBIO-B (09606.HK) and NARI (600406.SH) are experiencing slight declines.
Short Selling Activity: Significant short selling is noted in several stocks, including Tencent (00700.HK) with $1.04B and a ratio of 13.981%, indicating investor skepticism about these stocks.
Earnings Reports: HKEX (00388.HK) has posted strong earnings last quarter, maintaining an "Overweight" rating from JPM, suggesting positive investor sentiment.
Market Trends: The overall market shows a mix of gains and losses, with some stocks like SUNNY OPTICAL (02382.HK) and PING AN (02318.HK) experiencing modest increases amidst varying short selling ratios.
UBS Reveals Top Preferred Companies for Chinese Firms (Table)
UBS Research Report: UBS has released a report highlighting its preferred Chinese companies, all rated as Buy, with new additions including SYTECH, DONGFANG ELEC, and ENVICOOL.
Stock Performance: The report notes significant stock movements, with DONGFANG ELEC seeing a 15.117% increase, while companies like SUNGROW POWER and NetEase experienced declines.
Short Selling Data: The report includes short selling statistics, indicating high short selling ratios for several companies, such as HORIZONROBOT-W and ZIJIN MINING.
Market Insights: Related news from CICC suggests that increasing risks of power outages in Europe and the US may create opportunities for power equipment providers.
<Research>DBS Maintains Buy Rating on ZIJIN MINING (02899.HK), Increases Target Price to HKD55
ZIJIN MINING Performance: DBS Group Research highlights ZIJIN MINING's growth driven by active mergers and acquisitions (M&As) and strong operational capabilities, ranking it fifth in global copper reserves and sixth in gold reserves for 2024.
Cost Efficiency: The company's copper C1 cost decreased by 14% year-over-year to USD0.93 per pound, placing it in the top 20% globally, while maintaining competitive costs among gold miners.
Market Outlook: HSBC Research indicates a strong start for commodities, predicting outperformance for copper, aluminum, and precious metals, which may benefit ZIJIN MINING.
Investment Rating: DBS Group maintained a Buy rating for ZIJIN MINING and raised the target price for its H-shares to HKD55.
HSBC Research: Commodities Begin Strongly; Copper, Aluminum, and Precious Metals Set for Superior Performance
Market Performance: The CRB metals index surged by 10% at the start of 2026, indicating strong performance in the commodities market, particularly metals.
Investment Focus: HSBC Global Research favors commodities with structural demand and limited supply, highlighting copper, aluminum, precious metals, and battery raw materials.
Driving Forces: The current commodity cycle is supported by four key factors: AI and data centers, electric vehicle (EV) demand, energy storage systems, and themes of de-dollarization and safe-haven demand.
Recommended Stocks: Analysts from HSBC identified six stocks for metals and mining investments, including ZIJIN MINING, Freeport-McMoRan, VALE S.A., Sibanye, Northam Platinum, and Arm Holdings.
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%.
