Movement Alert|China Hongqiao Falls 3.12% in Regular Trading, Aluminum Sector Weakness Deepens as Goldman Sachs Bearish Call and Buyback Support Fade

Market Focus06-25

On June 25, China Hongqiao fell 3.12% in regular trading, trading at HK$21.0/share, with turnover of HK$187 million. The stock extended its multi-session decline amid persistent sector-wide selling pressure.

On the news front, the aluminum sector continued its collective downturn, with peers CHALCO down 2.99%, Chuangxin Industrial down 6.14%, and Nanshan Aluminum International down 4.58%. Goldman Sachs previously downgraded China Aluminum from neutral to sell, slashing the target price from HK$12.5 to HK$7.5, forecasting sustained aluminum price declines that have spread bearish sentiment across the sector. Meanwhile, the company's HK$3.079 billion buyback program has been fully executed, removing a key source of sustained buying support. Additionally, capital rotation from commodities into AI-related technology stocks has intensified selling pressure on aluminum equities.

Notably, Citi and Bank of America have maintained bullish stances, with buy ratings and target prices of HK$48 and HK$45 respectively, arguing that supply concerns are overstated and current valuations reflect excessive pessimism rather than fundamental deterioration.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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