HK Stock Market Move | CMOC Group Limited (03993) fell nearly 4% in the morning, with the issuance of $1.2 billion convertible bonds completed. The dilution risk of the Hang Seng Index is limited.

CMOC Group Limited (03993) fell nearly 4% in the morning, and as of the time of writing, rose 2.81% to 21.48 Hong Kong dollars, with a turnover of 393 million Hong Kong dollars. On the news front, on January 20, CMOC Group Limited announced that the issuance of a 1-year zero-coupon convertible bond with a total amount of 1.2 billion US dollars was successfully completed. Assuming all the bonds are converted at the initial conversion price of 28.03 Hong Kong dollars per H-share, the bonds will be converted into approximately 333.7 million H-shares, equivalent to approximately 8.48% of the existing issued H-shares and approximately 1.56% of the total issued shares of the Company as of the date of this announcement. Dahua Jixian released a research report stating that CMOC Group Limited's preliminary performance in 2025 is in line with expectations, mainly driven by copper production exceeding guidance. Management also guided that copper production in 2026 is expected to further increase by 2.6% to 10.7% annually. The bank pointed out that the cobalt export quotas from Congo reflect a structural tightening of global supply, leading to significant price increases, which is beneficial for large producers like CMOC Group Limited. In addition, the issuance of a 1.2 billion US dollar zero-coupon convertible bond has enhanced the company's financial flexibility and limited risk dilution.