HK Stock Market Move | Nickel industry stocks all rise, Indonesia's intention to strengthen control over resources is beneficial for stabilizing the long-term center of nickel prices.

Nickel industry stocks rose across the board. As of the time of writing, LYGEND RESOURCE (02245) rose by 9.05% to 21.92 Hong Kong dollars; XINXIN MINING (03833) rose by 6.64% to 2.73 Hong Kong dollars; CNGR (02579) rose by 6.64% to 30.5 Hong Kong dollars. On the news front, according to the Indonesian Nickel Miners Association, the government's nickel production target set out in the 2026 Work Plan and Budget (RKAB) is around 250 million tonnes, a significant decrease from the 379 million tonnes set for 2025. The Secretary General of APNI clearly stated that the reduction in production targets this time is mainly aimed at preventing further downward pressure on nickel prices, reflecting the intention to impact global nickel prices. CICC released a research report stating that the nickel production target of 250 million tonnes proposed this time is a government-level target, and there is still uncertainty about the final implementation and allocation. Considering the relatively small impact of current restrictions on nickel ore quotas on the Indonesian economy, and the benefit of higher nickel prices in increasing tax revenue and enhancing the value of domestic resources, the probability of the implementation of the policy to tighten nickel ore quotas is high. The bank believes that Indonesia's intention to strengthen its control over resources is beneficial for stabilizing the long-term central price of nickel.