HK Stock Market Move | CHONGQING IRON (01053) increases by more than 5%. Net loss attributable to shareholders narrowed by 83.82% in the first three quarters. Industry supply continues to shrink with expectations of further contraction.

CHONGQING IRON (01053) rose more than 5%, as of the time of drafting, it increased by 4.41% to 1.42 Hong Kong dollars, with a turnover of 20.9165 million Hong Kong dollars. On the news front, in recent days, CHONGQING IRON announced its performance for the first three quarters of 2025, with operating income of approximately 19.091 billion yuan, a year-on-year decrease of 7.32%; net loss attributable to shareholders of the listed company was approximately 218 million yuan, a year-on-year narrowing of 83.82%; basic loss per share was 0.02 yuan. Guotai Haitong pointed out that industry profits have been declining since 2021, and have been continuously losing money for three years. Some steel companies at the end of the industry chain are facing cash flow losses, highlighting the vulnerability of the supply side. Policies are further strengthening anti-monopoly expectations. The bank believes that there may be further production cuts or even suspensions on the supply side, and there is an expectation of continued contraction in 2026. In terms of policies, the recently released "Steel Industry Stability and Growth Plan (2025-2026)" proposed to "continue to implement production reduction policies, implement annual production control tasks according to the principles of supporting the development of advanced enterprises and forcing the exit of backward and inefficient production capacities, and promote the dynamic balance of supply and demand." The bank maintains the expectation of supply-side contraction, and the fundamentals of the steel industry are expected to gradually improve.