HK Stock Market Move | Copper industry stocks leading gains, market interest rate hike expectations significantly cooled off, institutions suggest that the window for correcting copper stocks being wrongly killed is approaching.

Copper stocks led the gains, as of the time of writing, CHINFMINING (01258) rose by 12.13% to 12.76 Hong Kong dollars; Zijin Mining Group (02899) rose by 9.72% to 30.92 Hong Kong dollars; MMG (01208) rose by 7.25% to 7.4 Hong Kong dollars; JIANGXI COPPER (00358) rose by 4.77% to 32.04 Hong Kong dollars. On the news front, the U.S. non-farm payroll data fell short of expectations, leading to a significant reduction in market interest rate hike expectations. Sinolink Futures pointed out that in the medium to long term, the insufficient capital expenditure in global copper mining in recent years and the decline in ore grade of old mines have resulted in a low elasticity of supply at the mining end; while new demand in electric power construction, new energy and supporting infrastructure, AI data centers and other emerging sectors is still in an expansion cycle. The mismatch between supply and demand cycles will continue to push up the center of copper prices. Sinolink released a research report stating that current copper stocks are in a combination stage of "low PE, high EPS resilience, and unproven commodities." The market is still pricing copper stocks based on the macro valuation framework of the past decade, but the current non-ferrous sector has entered an EPS-driven cycle, and the reassessment of the profit ability and resource value of the copper sector has not yet ended. Sinolink believes that August to September is likely to be a major window for the correction of misjudged copper stocks, with the probability of a strong rise in prices increasing further around Q4.