Understanding the Market | CHINAHONGQIAO rose over 6% during the session as interest rate cut expectations continue to strengthen, benefiting aluminum prices. The company's equity production capacity increase will enhance profits
CHINAHONGQIAO's stock price rose over 6% during the session, and as of the time of writing, it has increased by 5.74%, reaching HKD 26.52. Influenced by expectations of interest rate cuts and rising aluminum prices, LME aluminum rose by 2.06%. Analysts pointed out that interest rate cuts will benefit aluminum prices, and the company's increased equity capacity will enhance profits, with expectations for rising aluminum prices
According to Zhitong Finance APP, CHINAHONGQIAO (01378) rose more than 6% during the trading session, and as of the time of writing, it was up 5.74% at HKD 26.52, with a transaction volume of HKD 565 million.
In terms of news, on September 11 local time, London base metals rose across the board, with LME aluminum up 2.06% at USD 2,679.00 per ton. Guosen Futures pointed out that the CME FedWatch tool shows that the market is almost certain that the Federal Reserve will cut interest rates by 25 basis points at the end of the meeting on September 17, and the probability of a 50 basis point cut has also increased. The expectation of interest rate cuts continues to strengthen, the US dollar weakens, which is bullish for aluminum prices. In addition, as downstream demand gradually warms up and market expectations for the peak season rise, macro and fundamental factors are expected to gradually resonate, providing further upward momentum for aluminum prices.
Shenwan Hongyuan pointed out that CHINAHONGQIAO is an electrolytic aluminum production enterprise with significant integrated advantages, with a leading layout of overseas bauxite resources and a high self-sufficiency rate of alumina and electricity. Against the backdrop of increasing dependence on imported bauxite in China, coupled with low prices of thermal coal, the company's cost advantages are prominent. Considering that the company's equity production capacity will enhance profits, and with domestic electrolytic aluminum capacity approaching its ceiling, the new supply-demand pattern is expected to push aluminum prices upward. Minsheng Securities stated that with the Federal Reserve's clear interest rate cut in September and aluminum capacity reaching its ceiling, long-term value can be expected
