HK Stock Market Move | CHINAHONGQIAO (01378) surged over 4% during trading, driven by supply concerns that have led London aluminum prices to rise continuously. The company's full industrial chain layout is steadily advancing.

CHINAHONGQIAO (01378) rose over 4% during the session, and as of the time of writing, it has increased by 2.58%, trading at HKD 24.66, with a transaction volume of HKD 405 million. On the news front, concerns over market supply have led to a continuous rise in London aluminum prices. Hydro's Alunorte alumina refinery in Norway has temporarily cut its capacity by 50% due to the natural gas supply crisis. Hydros 2025 annual report shows that the Alunorte plant is among the worlds largest alumina refineries, with a designed annual capacity of 6.3 million tons. In addition, the increasingly bleak prospects for quickly reaching a deal to restart the Strait of Hormuz have heightened market concerns that Middle East supply will remain restricted in the foreseeable future. Soochow believes that considering the company's clear layout of the aluminum industry chain both domestically and internationally, and its consistent dividend payout ratio being among the top in the aluminum industry chain, it is initiating coverage with a "Buy" rating. The firm pointed out that the company's full aluminum industry chain layout is steadily progressing, with the coordinated development of upstream, midstream, and downstream driving performance improvements. In terms of upstream, the company has a global supply chain for bauxite and alumina, while the midstream focuses on aluminum electrolysis plants in Shandong and Yunnan, with an annual production capacity of 6.46 million tons of electrolytic aluminum. In the downstream sector, the company has plans for a recycled aluminum annual production capacity of 700,000 tons, with 400,000 tons currently completed.