CHALCO (02600) saw an intraday surge of over 3%. As of the time of writing, the stock was up 3.63%, trading at HK$12, with a turnover of HK$186 million. Recently, the Industrial Development Department of the National Development and Reform Commission (NDRC) released an article titled "Vigorously Promoting the Optimization and Upgrading of Traditional Industries." The article emphasized that for industries with strong resource constraints, such as alumina and copper smelting, the key lies in strengthening management and optimizing layout. These resource-intensive industries serve as foundational pillars of the national economy, playing a vital role in economic development, national defense, and various other sectors. A Morgan Stanley research report noted that the article specifically mentioned enhancing management and optimizing the layout of the alumina and copper smelting industries, while also encouraging large, leading enterprises in these sectors to pursue mergers and reorganizations. Morgan Stanley believes the new policy could potentially restrict the planning of new alumina production capacity and anticipates that industry consolidation will benefit leading companies.
Comments