HK Stock Market Move | CHINAHONGQIAO(01378) rose nearly 4% in early trading, significant and continuous repurchases demonstrate confidence. Disturbances in the aluminum industry are emerging.

CHINAHONGQIAO (01378) rose nearly 4% in early trading, and as of the time of writing, it was up 2.75% at HK$26.14 with a trading volume of HK$4.71 billion. On the news front, CHINAHONGQIAO continues to repurchase shares. The announcement showed that on October 14, the company spent HK$7.5941 million to repurchase 300,000 shares. Huaxin Securities released a research report stating that the company spent HK$2.6 billion in the first half of the year to repurchase 187 million shares, reflecting confidence from the board of directors and management team in the company's long-term strategy and growth. It is worth noting that on October 21, Century Aluminum announced a reduction in production due to a fault at its Grundartangi aluminum smelter, affecting a capacity of 200,000 tons, with production reduced by about two-thirds, accounting for 0.3% of global capacity. Earlier in August, South32 announced that its Mozal aluminum smelter may undergo maintenance due to power supply issues until March 2026, affecting a capacity of 500,000 tons. CITIC SEC released a research report stating that the probability of Mozal shutdown is high, potentially becoming a potential moment for the aluminum industry like Cobre Panama. Supply constraints continue to strengthen, signs of disruption are emerging, and the bank remains optimistic about the aluminum sector's profit and valuation trend. Sealand also stated that in the long term, the limited long-term supply increment in the aluminum industry while demand continues to grow, the industry may maintain its prosperous state, and maintains a "recommended" rating for the aluminum industry.