06693 Overview

Stock Performance: Zijin Mining (02899.HK) opened 5.44% lower, trading at HKD32.36, with a significant short selling volume of $395.07 million and a ratio of 10.345%.

Acquisition Announcement: The company has announced the acquisition of approximately 12.73% of CHIFENG GOLD (06693.HK) for RMB10.006 billion, making Zijin the largest shareholder post-transaction.

Share Placement Details: CHIFENG GOLD will issue about 311 million new H-shares to Zijin at a subscription price of HKD30.19 per share, reflecting a 28.3% discount from the previous week's price.

Market Context: The news comes amid broader market interest in Chinese basic materials stocks, with JPMorgan highlighting Zijin Mining as a top pick.

Shareholder Transfer: Li Jinyang, the largest shareholder of CHIFENG GOLD, transferred approximately 242 million A-shares (12.73% of issued capital) to Zijin Mining's subsidiary, Zijin Gold, for RMB10.006 billion on March 22, 2026.

New H-Shares Placement: CHIFENG GOLD will issue around 311 million new H-shares to Zijin Gold at a subscription price of HKD30.19 per share, representing a 28.3% discount, with estimated net proceeds of HKD9.292 billion.

Post-Transaction Holdings: After the transaction, Zijin Group will hold about 242 million A-shares and 330 million H-shares, totaling approximately 25.85% of the enlarged issued share capital, making it the largest shareholder.

Total Transaction Value: The total consideration for the share transfer and new H-shares placement is around RMB18.258 billion.

Share Transfer: Li Jinyang, the largest shareholder of CHIFENG GOLD, transferred approximately 242 million A-shares (12.73% of issued capital) to Zijin Mining's subsidiary, Zijin Gold, for RMB10.006 billion.

New H-Shares Placement: CHIFENG GOLD will issue around 311 million new H-shares to Zijin Gold at a subscription price of HKD30.19 per share, representing a 28.3% discount, with estimated net proceeds of HKD9.292 billion.

Post-Transaction Holdings: After the transaction, Zijin Group will hold about 242 million A-shares and 330 million H-shares, totaling approximately 25.85% of the enlarged issued share capital, making it the largest shareholder.

Total Transaction Value: The overall consideration for the share transfer and new H-shares placement is around RMB18.258 billion.

Market Reaction to Fed's Decision: The USD Index (DXY) fell to a nearly four-year low, contributing to spot gold prices exceeding USD5,200, with a peak at USD5,202 per ounce, while spot silver rose to USD113.4.

Hong Kong Stock Market Performance: The Hong Kong bourse opened higher, with the HSI gaining 198 points (0.7%) to reach 27,325, and several H-share gold miners, including ZIJIN MINING and SD GOLD, saw significant increases in their stock prices.

Short Selling Activity: Various gold mining stocks experienced notable short selling, with ZIJIN MINING and CHIFENG GOLD among those showing high short selling ratios, indicating investor caution or bearish sentiment.

Pre-Market Turnover Insights: Pre-market turnover for several gold mining stocks was substantial, with ZIJIN MINING and CHIFENG GOLD recording millions in turnover, reflecting active trading interest in the sector.

Market Performance: During the National Day Golden Week holiday, Hong Kong's stock market resumed trading with the HSI starting higher and reaching a four-year high, closing at 27,144, up 288 points or 1.1%.

Tech Stocks Surge: Major tech companies like Tencent, Alibaba, and Baidu saw significant gains, with Tencent hitting a four-and-a-half-year high and Alibaba reaching a four-year high, contributing to the overall market uplift.

Gold Mining Stocks Rise: International gold prices hitting new highs boosted gold mining stocks, with companies like Zijin Mining and Lingbao Gold achieving historical highs in their share prices.

Short Selling Activity: The report highlighted substantial short selling across various stocks, particularly in tech and gold mining sectors, indicating market volatility and investor sentiment.

Gold Price Forecast: Goldman Sachs remains bullish on gold prices, predicting potential increases beyond their initial forecasts of US$4,000 per ounce by mid-2026, driven by strong private investor demand and significant capital inflows into gold ETFs.

Recent Gold Price Trends: Since August 29, gold prices have surged by 12%, surpassing the US$3,200-3,450 range, and currently stand at approximately US$3,863.46 per ounce, indicating a robust market performance.