Citi: Rising commodity prices expected to benefit basic materials sector, while automakers and second-tier battery manufacturers face pressure.

The bank has assigned a 'Buy' rating to Aluminum Corporation of China (02600), China Hongqiao Group (01378), and Zijin Mining (02899), and also expressed optimism about pure copper enterprises.

Zhitong Finance11:38

Cui Dongshu of the China Passenger Car Association: Last month, the average price reduction for new cars was RMB 37,000, with new energy vehicles seeing a decrease of 14.8%.

Cui Dongshu, Secretary General of the China Passenger Car Market Information Joint Conference, provided the latest data showing that in January 2026, the average price of new car models with price cuts in the overall passenger car market was RMB 248,000 (hereinafter the same), with an arithmetic average discount of RMB 37,000. A breakdown shows that the average price of discounted new energy vehicle models was RMB 253,000, with an average price reduction of RMB 38,000, representing a decrease of 14.8%; the average price of discounted conventional fuel vehicle models was RMB 238,000, with an average price reduction of RMB 36,000, resulting in a decrease of 15%. The overall discount rate for new car models with price cuts in Mainland China’s passenger car market that month reached as high as 14.9%, rising month-on-month.

AASTOCKS08:49

Analysts Offer Insights on Consumer Cyclical Companies: SUBARU (OtherFUJHF) and Guangzhou Automobile Group Co (OtherGNZUF)

TipRanksFeb 7 04:40 · Ratings

Bernstein Sticks to Their Buy Rating for BYD Co (BYDDF)

TipRanksFeb 7 04:35 · Ratings

Citi forecasts that rising commodity prices will benefit basic materials, while automakers and second-tier battery manufacturers face pressure.

According to a Citi research report, commodity prices have risen significantly and appear to be consolidating at higher levels. The bank analyzed the impact on various sectors in mainland China. On the positive side, the basic materials sector is a major beneficiary, particularly aluminum, copper, and lithium suppliers. Citi has assigned a "Buy" rating to Aluminum Corporation of China (02600.HK), China Hongqiao (01378.HK), and Zijin Mining (02899.HK). It also favors pure copper companies such as MMG Limited (01208.HK), Luoyang Molybdenum (03993.HK), and Jiangxi Copper (00358.HK). Additionally, gold jewelry retailers will benefit from rising gold prices, while copper...

AASTOCKSFeb 6 16:18

Zhitong HK Stock Connect Shareholding Analysis | February 6

Analysis of Stock Connect Holdings | February 5, 2026

Zhitong FinanceFeb 6 08:30