HK Stock Market Move | Aluminum stocks rise as aluminum prices fluctuate moderately. Institutions point out that the valuation of the aluminum industry sector is attractive.

Aluminum stocks rose, as of press time, Aluminum Corporation of China (02600) rose by 5.41% to 11.69 Hong Kong dollars; CHINAHONGQIAO (01378) rose by 4.75% to 33.94 Hong Kong dollars. On the news front, according to Sublime China Information, the recent aluminum prices have been fluctuating slightly stronger, with the center of gravity moving up. After a strong uptrend at the end of October, aluminum prices have hit multiple new highs for the year. As we entered November, the upward trend in aluminum prices continued. As of November 10th, the average daily price of A00 aluminum in the domestic spot market was 21,490 yuan/ton, a month-on-month increase of 0.14%, and a rise of 690 yuan/ton or 3.32% from the low in October. Sublime China Information pointed out that at the macro level, attention is being paid to changes in export end and overseas supply disruptions as the window for China-US tariffs in November, as well as the fact that the Federal Reserve may cut interest rates by 25 basis points again in December, combined with factors such as low inventory levels, will support aluminum prices to remain high. Bank of America Securities pointed out that the overseas market is currently facing difficulties due to power shortages and rising electricity prices, while CHINA POWER has sufficient supply. The bank expects that the cost advantages in the next few years will expand, with China's aluminum supply reaching the upper limit of 45 million tons. It believes that high-cost global production will support Chinese aluminum prices and further expand profitability for companies in the years 2025 to 2027. The bank expects the aluminum sector to be attractive in terms of valuation under the theme of empowering artificial intelligence and data center development.