HK Stock Market Move | Lithium mining shares fall, the quarterly growth momentum of the two major lithium mining companies weakens compared to the previous quarter, and the factors of both long and short positions are intertwined, causing lithium carbonate futures to fluctuate at low levels.

Lithium mining stocks continued their recent decline, with Ganfeng Lithium Group (01772) falling 6.33% to HK$37.32, and Tianqi Lithium Corporation (09696) falling 4.63% to HK$32.12. On the news front, recently, the "lithium mining giants" Tianqi Lithium Corporation and Ganfeng Lithium Group released impressive half-year performance forecasts, but there was a clear divergence when looking at individual quarters. Ganfeng Lithium Group expects a net profit attributable to shareholders of 3.65 billion to 4.6 billion yuan in the first half of the year, turning from a loss year-on-year, with an increase of approximately 787.07% to 965.9%. The net profit attributable to shareholders in the second quarter is approximately 1.813 billion to 2.763 billion yuan, with a quarter-on-quarter change of -1.3% to 50.41%. Tianqi Lithium Corporation expects a net profit attributable to shareholders of 2.85 billion to 4.25 billion yuan in the first half of the year, with a year-on-year increase of 3276.35% to 4934.91%. The net profit attributable to shareholders in the second quarter is approximately 974 million to 2.374 billion yuan, with a quarter-on-quarter change of -48.08% to 26.55%. Tong Hui Futures pointed out that they expect that in the next one to two weeks, the lithium carbonate futures prices will maintain a low-level volatile pattern. The core logic lies in the interweaving of long and short factors: the bearish pressure mainly comes from the continuously rising capacity utilization rate and the expectation of supply increment brought by the steady production of overseas salt lake projects, while the weak sales data of new energy vehicles in early July have weakened the optimistic sentiment on the demand side. However, the downward pressure on prices is limited as the continuous decline in industry inventories indicates that the fundamentals are not overall oversupplied.