Copper Stocks Lead Gains in Hong Kong Market on Strong Interim Results and Geopolitical Price Support

Copper sector stocks are leading the market higher.

At the time of writing, JIANGXI COPPER (00358) shares are up 6.88% to HK$32.3, CMOC (03993) has gained 6.33% to HK$15.8, MMG (01208) has risen 6.08% to HK$7.5, CHINFMINING (01258) is up 5.26% to HK$12.4, and ZIJIN MINING (02899) has advanced 3.86% to HK$30.68.

Positive Performance Outlook

The recent positive profit alert from CMOC has boosted market sentiment. BofA Securities noted that the company is expected to report a net profit attributable to shareholders of RMB 15.5 billion to RMB 16.5 billion for the first half of 2026, representing a year-on-year increase of 79% to 90%. This implies a second-quarter net profit of approximately RMB 7.7 billion to RMB 8.7 billion, up 64% to 85% year-on-year and 0% to 13% quarter-on-quarter, outperforming market expectations. The firm remains positive on the company, citing resilient copper prices, production growth, and attractive valuations.

Analyst Views on Copper Fundamentals

CITIC Securities pointed out that long-term underinvestment in global copper mining, combined with structural demand growth from the energy transition, establishes a clear long-term upward trend for copper prices. They suggest focusing on the profit elasticity of leading domestic copper and aluminum companies.

Huayuan Securities indicated that copper prices are maintaining high volatility amid repeated geopolitical tensions and shifting expectations regarding Federal Reserve interest rate hikes. In the short term, the focus should be on US CPI data. From a medium to long-term perspective, insufficient capital expenditure in copper mining and frequent supply-side disruptions may shift the copper market's supply-demand balance from tight to a deficit, supporting higher copper prices over the longer term.

Changjiang Securities believes that moderating expectations for Fed rate hikes coupled with continued inventory drawdowns significantly improve the medium-term prospects for copper and aluminum commodities. They anticipate a potential valuation re-rating for the sector, especially if geopolitical conflicts ease and a rate-cutting cycle begins.