<div id="readability-page-1"><div>HSBC Research published a report stating that Chinese copper stocks have lagged the sharp rally in copper prices. LME copper prices surged significantly in May, breaking above USD14,000 per tonne, mainly driven by supply concerns. Peru announced an emergency energy decree, signaling potential production cut risks, while Middle East conflicts disrupted sulfur trade flows.The broker noted that the structural bull case for copper remains intact, supported by strong demand from electrification and the energy transition. Coppers increasingly strategic role in energy security and AI infrastructure competition is reflected in continued inventory increases on COMEX. Demand resilience in China is evident in domestic inventory drawdowns and stable Yangshan copper premiums.However, despite strong copper price performance and favorable supply-demand fundamentals, Chinese copper stocks have recorded only moderate gains. This is mainly due to market concerns over a potential global demand slowdown and capital rotation into AI-related sectors. The broker believes these concerns have been overstated and highlight a buying opportunity ( see separate table for TP details).The broker raised the TP for CHINFMINING (01258.HK) -1.070 (-7.215%) Short selling $3.77M; Ratio 2.774% to HKD18.6 and maintained it as its top pick, as higher sulfuric acid prices are an earnings tailwind rather than a cost pressure for the company. It considers market concerns over sulfur supply and cobalt export quotas for CMOC (03993.HK) -1.130 (-5.701%) Short selling $70.42M; Ratio 13.842% to be excessive. Among the companies under coverage, MMG (01208.HK) -0.720 (-6.957%) Short selling $13.79M; Ratio 4.708% has the highest earnings sensitivity to copper prices and is well positioned to benefit from rising copper prices, supported by on-schedule production expansion plans and strict cost control. As for ZIJIN MINING (02899.HK) -1.380 (-3.708%) Short selling $169.65M; Ratio 17.760% , its short-term earnings sensitivity to copper prices is relatively lower due to a higher gold contribution, but the broker continues to favor its quality and diversification profile.In addition, the broker maintained a Hold rating on JIANGXI COPPER (00358.HK) -1.140 (-2.893%) Short selling $38.36M; Ratio 13.123% , citing its undemanding valuation and the fact that most of its sulfuric acid sales are under long-term contracts, limiting its ability to benefit from rising sulfuric acid prices. (ha/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-15 12:25.)</div></div>

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HSBC Research reports that Chinese copper stocks have underperformed despite a significant rise in copper prices, driven by supply concerns. The firm raised the target price for CHINFMINING to HKD18.6, citing strong demand and favorable fundamentals. It views current market concerns as overstated, presenting a buying opportunity. MMG is highlighted for its earnings sensitivity to copper prices, while ZIJIN MINING's earnings are less sensitive due to gold contributions. A Hold rating is maintained for JIANGXI COPPER due to its valuation and contract limitations.

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HSBC Research: Chinese Copper Stocks Lag Copper Price Rally Present Buying Opportunity; CHINFMINING  TP Raised to HKD18.6