CHALCO Shares Jumped 6% after Planning to Acquire Yunnan Aluminium Yongxin and Two Other Subsidiaries to Strengthen Control
CHALCO recently announced that Yunnan Aluminium will acquire shares of Yunnan Aluminium Yongxin, Yunnan Aluminium Runxin, and Yunnan Aluminium Hongxin from Yunnan Metallurgical Group. All three companies are currently controlled subsidiaries of Yunnan Aluminium. Upon completion of this acquisition, Yunnan Metallurgical Group will no longer hold stakes in these three companies. This move will help Yunnan Aluminium streamline the equity structure of its affiliated companies, achieve professional integration of its aluminum assets, and increase its equity-based electrolytic aluminum capacity. This is in alignment with Yunnan Aluminium’s strategy to enhance and strengthen its core businesses.
HSBC released a research report forecasting stronger fundamentals for China’s aluminum sector next year. It expects continuous growth in downstream demand and potential supply shortages to become a key market focus. The report predicts that China's capacity will remain capped at 45 million tons, while global capacity expansion will remain limited. Supported by the development of the electric vehicle industry and grid investments, China’s demand for aluminum is expected to remain stable, while the drag from the construction sector is anticipated to ease. The report further projects a 6% year-on-year rise in aluminum prices in 2026, with additional upside risks, maintaining aluminium stocks as a top pick in China’s materials sector.
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