HK Stock Market Move | Copper stocks collectively rise, with US-China tariff negotiations leading macro sentiment. Positive expectations will drive copper prices close to highs.

The copper industry stocks collectively rose, as of the time of publication, CDAYENONFER (00661) rose by 10% to HK$0.099; CMOC Group Limited (03993) rose by 7.28% to HK$17.38; JIANGXI COPPER (00358) rose by 4.29% to HK$35.04; ZIJIN MINING (02899) rose by 4.29% to HK$35.04. On the news front, China and the United States held economic and trade consultations in Kuala Lumpur, Malaysia. Li Chenggang stated that China and the United States have reached preliminary consensus on prudent resolution of multiple important economic and trade issues. Zhongxin Futures released a research report stating that China and the United States have resumed negotiations, with slight easing of tariff pressures. The U.S. government is still in a state of shutdown, employment data has not been released, and although Powell's dovish stance guides the rate cut expectations, the window of macro event disturbances has not yet closed. There is still no news on the resumption of production at the Grasberg copper mine, with more disturbances at the mining end and poor smelting profit environment. The path from tight copper supply to reduced smelting capacity is not smooth, and downstream consumption is a core variable. Current traditional peak season consumption is lower than last year. CMSC released a research report stating that downstream acceptance of copper prices is gradually increasing, with improved downstream procurement this week. The second 90-day exemption between China and the U.S. is about to end, dominating macro sentiment and copper prices. Codelco plans to raise copper premiums for the European market in 2026 to $345 per ton, reaching a historical high, reflecting concerns in the market about tight copper supply next year. We maintain a positive outlook on copper prices in the medium to long term, with sector valuations at historically low levels next year, suggesting buying opportunities.