CHALCO (02600) surged more than 4% in early trading, reaching HK$11.13 with a trading volume of HK$225 million by the time of reporting. The company recently announced its intention to acquire equity in Yunnan Aluminum Yongxin, Yunnan Aluminum Runxin, and Yunnan Aluminum Hongxin from Yunnan Metallurgical Group. These three companies are all majority-owned subsidiaries of Yunnan Aluminum. Upon completion of the acquisition, Yunnan Metallurgical will no longer hold stakes in these firms, allowing Yunnan Aluminum to optimize its corporate equity structure, consolidate aluminum assets, and increase its electrolytic aluminum capacity—aligning with its strategic goal of strengthening its core business.
HSBC released a research note projecting a stronger fundamental outlook for China's aluminum industry next year, driven by sustained downstream demand growth and potential supply shortages. The report anticipates China's production capacity to remain capped at 45 million tons, with limited global capacity expansion. Supported by the electric vehicle sector and grid investments, domestic demand is expected to stay robust, while the drag from the construction industry is likely to ease. HSBC forecasts a 6% year-on-year rise in aluminum prices by 2026, with upside risks, and continues to favor aluminum stocks as top picks in China's materials sector.
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