HK Stock Market Move | JIANGXI COPPER (00358) is now up more than 3%, the company has made its third offer to acquire SolGold and the copper production is expected to increase significantly after the acquisition.

Jiangxi Copper (00358) is now up more than 3%, as of the drafting time, up 3.6% to HK$35.1, with a turnover of HK$3.14 billion. In terms of news, Jiangxi Copper has once again raised its acquisition offer for the UK-listed company SolGold to 28 pence per share, with a total value of approximately 842 million (US$1.13 billion). This is the third time in three weeks that Jiangxi Copper has made an offer to acquire SolGold, which owns a top-tier copper-gold mine project in Ecuador. It is reported that Jiangxi Copper has obtained support from other major shareholders of SolGold, and the copper production is expected to increase significantly after the acquisition. Citigroup has released a research report stating that although it is expected that Jiangxi Copper's gross profit from copper smelting business will decrease year-on-year next year, and there is downward pressure on its long-term smelting and refining business, it is expected that the increase in copper, gold, and sulfuric acid prices will drive the company's overall gross profit up next year. The bank believes that the current valuation is attractive, and maintains a "buy" rating on both A shares and H shares.