Stock Ratings Overview: Several companies in the mining and energy sectors received updated ratings, with ZIJIN MINING and CMOC rated as "Overweight," while JIANGXI COPPER was upgraded from "Underweight" to "Neutral."

Short Selling Activity: Notable short selling activity was reported for various stocks, including ZIJIN MINING and CHINAHONGQIAO, with short selling ratios indicating significant market interest.

Price Target Adjustments: Price targets for ZIJIN MINING and CMOC were raised, reflecting positive market sentiment, while JIANGXI COPPER's target was also increased, indicating a shift in investor outlook.

Market Performance: The overall market performance showed mixed results, with some stocks like GANFENG LITHIUM and TIANQI LITHIUM experiencing gains, while others like CHALCO and YANKUANG ENERGY faced declines.

JP Morgan's Sector Preference: JP Morgan ranks the basic materials sector for 2026 as Copper/Gold > Aluminum > Lithium > Coal > Steel, anticipating continued outperformance of MSCI China Materials over MSCI China due to supply disruptions and M&As.

JIANGXI COPPER Rating Upgrade: The rating for JIANGXI COPPER was upgraded to Neutral based on a positive outlook for copper, while Chinese policies are seen as key drivers of commodity prices, with milder-than-expected implementation of the "anti-involution" policy.

Steel Sector Challenges: Due to ongoing efforts to reduce excess capacity, steel profit margins are expected to remain low, leading to downgrades for BAO IRON to Neutral and ANGANG STEEL to Underweight.

Morgan Stanley's Top Picks: ZIJIN MINING is highlighted as Morgan Stanley's top pick for the year, with continued favor for CMOC, CHALCO, and CHINAHONGQIAO amidst significant short selling activity in these stocks.

Market Performance: The HSI opened 155 points higher and surged to a high of 26,748, closing at 26,716, up 369 points or 1.4%, with a turnover of HKD99.281 billion.

Resource Stocks Surge: Key resource stocks like ZIJIN MINING and CHINAHONGQIAO reached historical highs, with significant gains and high turnover, indicating strong investor interest.

Chip Stocks Activity: Major chip stocks, including SMIC and HUA HONG SEMI, saw positive movement, while BIREN TECH experienced a decline, reflecting mixed performance in the tech sector.

Financial Sector Support: Heavyweight financial stocks like HSBC and AIA contributed to market strength, with HSBC reaching a post-dividend high, showcasing resilience in the financial sector.

Acquisition Announcement: CMOC has announced a USD 1 billion acquisition of a Brazilian gold mine, aiming to diversify its business beyond copper and cobalt.

Earnings Impact: HSBC Research indicates that CMOC's medium-term earnings will still be primarily influenced by copper prices, with a 1% change in copper affecting 2026 earnings by approximately 1%.

Target Price Adjustment: HSBC has raised CMOC's target price from HKD 7.6 to HKD 18.6 while maintaining a Hold rating due to the absence of short-term catalysts for revaluation.

Short Selling Data: CMOC has reported short selling of $79.69 million, with a ratio of 12.124%, indicating significant market activity around the stock.

Commodity Prices Overview: Commodity prices, particularly copper, have surged, with copper reaching record highs due to US tariffs, supply disruptions, and global shortages, gaining over 33% YTD, the highest increase since 2009.

Silver Price Movement: Silver prices hit a record high before declining slightly, reflecting the overall strength in commodity markets.

Stock Performance: Jiangxi Copper (00358.HK) saw a significant rise, touching a record high of HK$41.98, while other mining stocks like MMG and CHINFMINING also experienced gains, despite some stocks like ZIJIN MINING and CMOC facing declines.

Analyst Upgrades: Macquarie has raised the target price for ZIJIN MINING (02899.HK) due to improved earnings forecasts linked to rising gold prices.