＜Research＞HSBC Global Research Expects Copper Prices to Stay High, Prefers CMOC & ZIJIN MINING w/ TP Raise

　　HSBC Global Research noted its optimism in a report that copper prices will remain elevated due to recovering demand from the energy transition and tight copper concentrate supply.

　　According to the broker, copper demand will continue to be supported by strong demand for energy transformation, such as grid investment, renewable energy installations and electric vehicle production. Demand for real estate completions also has the potential to improve in 2H24 as the Chinese government rolls out more stimulus packages for the real estate sector.

　　On the supply side, the broker believed copper concentrate supply may be vulnerable to disruptions in mine production. Stocks of copper concentrate at mainland ports have rebounded since April, partly due to increased use of copper scrap, but stocks are still below historical figures.

　　HSBC is bullish on CMOC (03993.HK) -0.240 (-3.357%) Short selling $23.79M; Ratio 16.966% as its copper output growth from production expansion is faster than its peers. The broker maintained a Buy rating on the stock, with the target price on its H-shares raised from $9.4 to $9.5. HSBC also preferred ZIJIN MINING (02899.HK) -0.720 (-4.245%) Short selling $80.63M; Ratio 13.763% for its diversified portfolio of mines, which has brought steady growth and favourable exposure to gold production. The broker kept its Buy rating and elevated its H-share target price from $20.9 to $21.3.

　　(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-18 16:25.)