HK Stock Market Move | Yichun intends to cancel 27 mining rights. Tianqi Lithium Corporation (09696) and Ganfeng Lithium Group (01772) opened nearly 4% higher.

The lithium stocks opened high in the morning trading session. As of the time of writing, Tianqi Lithium Corporation (09696) rose by 3.73% to 48.36 Hong Kong dollars; Ganfeng Lithium Group (01772) rose by 3.61% to 50.85 Hong Kong dollars. On the news front, on December 17th, the main contract for lithium carbonate futures surged by nearly 5% to 105,600 yuan per ton. It was reported that after the closure of the Contemporary Amperex Technology's Jiaonan mine, the "Asia's lithium capital" Yichun saw another major move. The Yichun Natural Resources Bureau issued a public notice to cancel 27 mining permits. The Lion Hill lithium ore mine in Yifeng County, Yichun, owned by Jiangxi Special Electric Motor, is one of the 27 mining rights proposed for cancellation in this public notice. Jiangxi Special Electric Motor announced that the company has submitted an objection application. Huatai Futures believes that the current uncertainty on the supply side is one of the key factors supporting the strong prices, with disruptions in domestic and foreign supplies constantly occurring. Overall, in the short term, there is a high probability of maintaining high-level fluctuations. Attention should be paid to the release of production capacity and fund trends, and vigilance should be maintained against the volatility brought by changes in supply and demand margins.