Market Outlook for 2026: BofA Securities predicts that the "Year of the Fire Horse" will favor electrification and AI power infrastructure in the Chinese basic metals market, with a focus on aluminum, gold, copper, lithium, and cobalt stocks.

Stock Recommendations: The broker recommends buying aluminum stocks and has a positive outlook on gold, copper, lithium, and cobalt, while being neutral on coal and bearish on solar energy and building materials due to weak demand and declining profit margins.

Top Stock Picks: Key stock picks include CHALCO, ZIJIN MINING, CHINAHONGQIAO, SD GOLD, and GANFENGLITHIUM, with varying short selling ratios indicating market sentiment.

Underperforming Stocks: Notable underperformers include TONGWEI, XINYI SOLAR, ANGANG STEEL, and CR BLDG MAT TEC, which are facing significant short selling pressures.

Goldman Sachs Commodity Report: Goldman Sachs predicts that China's commodity demand will stabilize in 2023, with growth rates between -1.3% and 2%, and a gradual recovery expected from the second half of 2025.

Market Dynamics: The report highlights stable supply-demand fundamentals and a favorable macro environment, but future price directions will depend on supply outlook changes influenced by themes like supply discipline, anti-involution, and mergers and acquisitions.

Commodity Outlook: The firm is optimistic about cement and coal, cautious about steel and aluminum, and maintains a positive outlook on copper and gold, while being cautious regarding lithium and paper packaging.

Stock Ratings: Various stocks in the commodities sector have been rated with adjustments, including downgrades for some steel companies and upgrades for coal and cement firms, reflecting the shifting market sentiments.

Stock Performance Overview: Various Hong Kong stocks showed mixed performance with notable gains in sectors like copper and precious metals, while some stocks in the steel and cement sectors remained stable or declined slightly.

Short Selling Data: Significant short selling activity was observed across multiple stocks, with ratios indicating higher short interest in companies like CHINAHONGQIAO and ZIJIN MINING.

Analyst Ratings: Analysts provided ratings and target prices for several stocks, with recommendations to "Buy" for companies like CHINAHONGQIAO and ZIJIN MINING, while others like CMOC and MMG were rated as "Hold."

Market Insights: Reports suggest a cautious outlook in the auto sector, with recommendations for early positioning in select stocks like GEELY AUTO, reflecting broader market sentiments.

Stock Performance: HSBC Research reports that China's steel and cement companies have seen strong stock performance since July, driven by "anti-involution" measures aimed at reducing irrational competition and excess capacity, alongside the launch of the Yarlung Tsangpo river hydropower project.

Industry Outlook: The report anticipates further policy momentum leading to more robust supply control measures in the cement industry, with top picks including CONCH CEMENT, CR BLDG MAT TEC, and CNBM, while MAANSHAN IRON is favored over ANGANG STEEL due to better profitability.