HK Stock Market Move | JIANGXI COPPER(00358) up more than 9% again and breaks through the peak. The company recently acquired all shares of SolGold. The refined copper production is expected to be reduced next year.

JIANGXI COPPER (00358) rose more than 9% in early trading, reaching a high of HKD 44.62, setting a new record high. As of the time of writing, it has risen by 7.57% to HKD 43.78, with a trading volume of HKD 5.53 billion. On the news front, JIANGXI COPPER announced that its wholly-owned subsidiary, Jiangxi Copper Hong Kong Investment, will acquire all issued and to be issued ordinary shares of SolGold plc through an all-cash transaction. The total consideration that Jiangxi Copper Hong Kong Investment may pay for the acquisition will not exceed GBP 764 million, based on the total number of issued SolGold shares and granted share options as of the announcement date (excluding the shares already held by Jiangxi Copper Hong Kong Investment). The completion of the acquisition is subject to approval from SolGold shareholders and the satisfaction or waiver of other conditions. It is worth noting that the National Development and Reform Commission published an article on December 26 with the title "Vigorously Promoting the Optimization and Upgrading of Traditional Industries," which mentioned strengthening the management and optimization layout of the aluminum oxide and copper smelting industries and encouraging large-scale backbone enterprises in the aluminum oxide and copper smelting industry to implement mergers and reorganizations. Morgan Stanley believes that lower annual copper concentrate processing fees and long-term contract concentrate volumes could lead to a reduction in refined copper production by 2026. These factors, combined with relatively stable demand, should support copper prices at high levels, benefiting Zijin Mining Group, CMOC Group Limited, MMG, and Jiangxi Copper.