Hong Kong Stock Market Movement | Lithium Battery-Related Stocks Decline Again as New Capacity Comes Online, Undermining Market Expectations of Strong Demand

Lithium battery-related stocks declined again. As of the time of writing, CATL (03750.HK) fell 6.82% to HK$594; Tianqi Lithium (09696.HK) dropped 4.15% to HK$33.76; China Aviation Lithium Battery (CALB) (03931.HK) decreased by 3.17% to HK$21.4; Ganfeng Lithium (01772.HK) slipped 3.16% to HK$41.72; and Longpan Tech (02465.HK) declined 3.08% to HK$10.06.

Zhitong FinanceJul 10 15:26

JPMorgan: Positive earnings surprises are expected in China's materials sector, with a relative preference for copper and gold stocks.

JPMorgan’s preference ranking among sub-sectors is copper > gold > aluminum > lithium > coal > steel, noting that valuations of copper and gold stocks have already adjusted downward amid aggressive rate hike expectations, yet underlying physical fundamentals remain solid.

Zhitong FinanceJul 10 09:58

Major Broker: JPMorgan's Investment Ratings and Target Prices for Materials Stocks (Table)

JPMorgan published a research report listing the investment ratings and target prices for materials stocks as follows: Stock | Investment Rating | Target Price (HKD) Zijin Mining (02899.HK) | Overweight | HK$55 → HK$50 CMOC Group (03993.HK) | Overweight | HK$28 → HK$25 Jiangxi Copper Company Limited (00358.HK) | Overweight | HK$51 → HK$44 MMG Limited (01208.HK) | Overweight | HK$13 Zijin Gold International (02259.HK) | Overweight | HK$240 → HK$170

AASTOCKSJul 9 16:10

JPMorgan: Positive earnings surprises expected in China's materials sector; copper and gold stocks preferred

JPMorgan published a research report noting that within China's basic materials sector, copper, gold, aluminum, lithium, and select coal companies are expected to issue profit warnings. The firm believes investors will gradually refocus their attention on earnings and fundamental supply-demand dynamics. JPMorgan’s subsector preference ranking is copper > gold > aluminum > lithium > coal > steel, citing that valuations for copper and gold equities have already adjusted downward amid aggressive rate hike expectations, while physical market fundamentals remain robust. In the copper segment, JPMorgan expects CMOC Group (03993.HK), Jiangxi Copper (00358.HK), MMG Limited (01208.HK), and Zijin Mining (02899.HK) to deliver strong performance.

AASTOCKSJul 9 15:50

Zhongtai Securities: Simulated total investment yield of insurance funds rises to 4.79%; the overarching logical framework for the sector remains unchanged.

The overarching logic framework for the sector—near-term relief from selling pressure driven by liquidity conditions, medium-term support from the 'deposit reallocation & gradual bull market' narrative boosting valuations and profit growth, and long-term resolution of spread-loss concerns as pro-cyclical dynamics materialize—remains intact.

Zhitong FinanceJul 9 14:08

Hong Kong Stock Market Movement | Lithium Battery-Related Stocks Plunge Across the Board as Jianxiawo Resumes Production and West Africa's Largest Lithium Mine Begins Operations, Boosting Market Expectations of Increased Lithium Supply

Lithium battery-related stocks declined across the board. As of the time of writing, China Aviation Lithium Battery (03931) fell 5.91% to HK$21.64; Longpan Tech (02465) dropped 6.09% to HK$10.48; Tianqi Lithium (09696) declined 5.01% to HK$34.54; and Ganfeng Lithium (01772) slipped 2.19% to HK$42.84.

Zhitong FinanceJul 9 10:53