HK Stock Market Move | Copper stocks fall collectively as slowing AI infrastructure may weigh on copper demand; potential U.S. copper tariffs also distort copper prices.

Copper stocks fell collectively. As of press time, CHINFMINING (01258) dropped 5.73% to HK$11.52; CMOC Group Limited (03993) fell 5.31% to HK$12.12; JIANGXI COPPER (00358) declined 3.90% to HK$24.64; MMG (01208) dropped 3.44% to HK$6.87. On the news front, Democrats scored a major victory in the midterm elections, and the market is reassessing the policy and regulatory risks that U.S. data center construction may face. Meanwhile, the return cycle on massive AI capital expenditure, financing costs, and the actual delivery capacity of data center projects are facing increasing scrutiny. As a result, market sentiment on the demand outlook for materials needed for data center construction and circuit board soldering is also growing increasingly pessimistic. Public information shows that copper is used in large quantities in data center and power grid construction, and a slowdown in data center construction progress may drag on copper demand. In addition, Macquarie analyst Alice Fox pointed out that copper prices have exceeded the range that supply levels can support: "A massive surplus emerged globally last year, and we expect the surplus to persist for the next few years." Artificial market distortions caused by potential U.S. copper tariff policy are also seen as one of the important factors pushing up prices. Once the tariff threat is lifted, the market may face pressure from rapid destocking.