January 13th [Bank of China Guest] Hang Seng Index, Zijin Mining, Jiangxi Copper, CSPC Pharma, Wuxi Bio, China Life

Simon: Hi Niki. It's that time of the week again where we talk about stocks, and I also want to ask you some questions about warrants. Why don't we start with the Hang Seng Index?Look, today's (13th) Hang Seng Index has actually reached some highs temporarily, though it has pulled back a bit now. But overall, it’s still up. For example, reviewing the market sentiment over the past two days, how are investors viewing the Hang Seng Index?

BOC International Director Niki: In terms of index performance, today’s index did shine, reaching as high as 27,143 points, which is very close to the November peak of around 27,188 points. However, after touching this high point, the gains narrowed, meaning that the overall upward momentum doesn’t seem as strong as before. But I’d like to mention that the overall market trading volume remains very active. Of course, we're still recording, and the stock market hasn’t closed yet. So far, the trading volume of Hong Kong stocks has reached more than 276 billion, which is a relatively high level for recent market activity. If you’ve been following the A-share market, you’ll also see related news saying that the trading volume in A-shares has been continuously climbing, almost nearing 3.6 trillion RMB. So you can see that the overall stock market is heating up, and the performances of A-shares and Hong Kong stocks are consistent.

After the Hong Kong stock market broke through 27,100 points today, some investors became a bit more conservative as the gains narrowed. After all, the index surged nearly 1,000 points in just about a week, which is quite significant. Therefore, around the 27,000-point level, there might be a slight adjustment. As a result, investors didn’t blindly chase the rally to buy bull contracts; instead, many investors cashed out their Hang Seng Index bull contracts, long positions, or call warrants when the market surged to 27,100 points, locking in profits and then switching to buying bear contracts or short positions, positioning for a potential upward movement after a pullback at higher levels. Thus, today’s overall capital flow was mainly into short positions. When referencing market sentiment, this point can be noted. The 27,000-point mark is an important threshold, and the tug-of-war between bulls and bears at this level may last for another day or two, given that the market rose over 1,000 points in just a few days and needs some digestion.

Simon: So if investors understand market sentiment as Niki mentioned earlier, such as by checking the distribution chart of bull and bear contracts, they can also visit www.bocifp.comthe website of BOC International (www.bocifp.com), where the latest distribution chart of Hang Seng Index bull and bear contracts can be clearly seen on the homepage.

Simon:Alright, let's move on to talk about individual stocks. The first stock we want to discuss today is Zijin Mining (02899). The overall trend of this stock has actually been pretty good.NikiAs you mentioned, this sector and this stock have had inflows for some time now. Meanwhile, the stock performance has been quite impressive, reaching a high of 40.7 yuan today. From the perspective of the warrant market, what can you share with investors regarding a stock like 2899?

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Niki, Director of BOC International: In fact, regarding precious metal-related stocks such as Zijin Mining, Shandong Gold, Jiangxi Copper, etc., my view remains relatively positive this year. As I’ve mentioned before, at the start of 2026, we will likely see some dynamics among major countries concerning resources, which will probably continue to push up resource prices and even make precious metals a safe-haven asset. Therefore, I remain optimistic about gold prices. Last year, when Simon and I were on the show, I shared that starting from mid-last year, I mentioned that international gold prices could rise to $5,000 per ounce, and now it's already close to $4,600 per ounce, very near that target. So from a medium- to long-term perspective, it still looks promising.

For investors, the simplest investment tool to participate in this market is stocks. Additionally, one can utilize leverage by considering related warrant tools. Over the past couple of years, global markets have been relatively volatile, so it makes sense to allocate part of your assets or portfolio to precious metals or commodity-type assets. Everyone experienced the trade disputes last April and saw the uncertainties involved. Over the next ten or twenty years, the global trade landscape may change and won’t be as free as before. From a regional perspective, each region will pay more attention to nearby resource allocation, which will drive up resource prices. Investors can pay more attention to these opportunities. Regarding product selection, relevant warrant tools can be considered. For example, for Zijin Mining call warrants, you can choose product code 21590, with a strike price of 48.65 yuan, expiring in mid-April this year, offering leverage of about 7 times. Today, after a surge, the Hong Kong stock market pulled back slightly, and some major tech stocks also saw minor corrections, but precious metal stocks like these remained firmly at recent highs, showing relatively strong buying support.$BIZIJIN@EC2604B.C (21590.HK)$Today, after a surge, the Hong Kong stock market pulled back somewhat, and some major tech stocks also saw minor corrections. However, precious metal stocks like these remained steady at recent highs, indicating relatively strong buying interest.

Simon: Just now, Niki You also mentioned that apart from 2899, there's Jiangxi Copper (00358). Is it also drawing investor attention in the CBBC market?

Niki, Director of BOC International: Yes, based on recent fund flow data, investors seem to remain concentrated on popular sectors like AI, chips, and technology stocks. However, these commodity stocks are already showing signs of an upward trend, with increasing open interest. Although not yet among the top three most heavily invested sectors, the overall rise in open interest indicates that some investors have started paying attention to these less frequently reported stocks. Additionally, some investors have already begun taking early positions. Despite its name, Jiangxi Copper derives about 20%-30% of its profits from gold-related businesses. Therefore, if investors are bullish on Jiangxi Copper, besides monitoring the stock itself, they can also consider related CBBC products, such as the call warrant with code 27366. $BIJIANC@EC2604B.C (27366.HK)$ The warrant has a strike price of 52.88 HKD and expires around mid-April this year. Its leverage is quite good, providing approximately 5x leverage.

Simon:Speaking of products, I’d like to ask — BOC International launches new products daily. Besides checking on the website, if I’m interested in a certain niche stock or industry sector, can I call during market hours to inquire about newly launched products?

Niki, Director of BOC International: Yes, you can. If convenient, you may call our hotline.Warrant Hotline: 00+852 3988 6909Of course, the most convenient method is to log into our website www.bocifp.com, the BOC International CBBC site, 24/7 where all product information is updated a day prior to the launch of new products. Thus, if you want to do your homework in advance and find suitable terms for products, simply search on our product site. For instance, those who prefer CBBCs or bull/bear contracts, searching for 'warrants' will lead you to relevant tools; similarly, for bull/bear contracts, you can find desirable tools via the corresponding search bar on the homepage. Of course, if searching during market hours is inconvenient, calling us directly is the easiest option. Dial 39886909 to reach me, Niki, or my colleagues for assistance.

Simon: Alright, since the hotline is so accessible, let me just ask you directly now,I’d like to discuss another stock, CSPC Pharma (01093). Today’s movement in CSPC Pharma was quite impressive, reaching a high of 10 HKD. To be honest, you’ve shared many insights about 1093 recently, including market fund flows. Now that it has surged above 10 HKD, how are investors viewing call warrants related to 1093 currently?

Niki, Director of BOC International: In fact, as we enter 2026, financial news often highlights AI and technology. However, companies that truly apply AI to their operations and generate profits are those integrating AI into specific industries. Standalone AI tools or platforms might serve as auxiliary functions but haven't generated substantial profits yet. On the other hand, applying AI to biopharmaceuticals and innovative drug development significantly shortens the R&D process and cycle. Thus, over the past couple of years, China's innovative drug sector, along with related licensing deals in terms of volume and value, has reached multi-year highs. Investors should pay attention to biopharma companies, including CSPC Pharma (1093) and Wuxi Bio (2269). $WUXI BIO (02269.HK)$ Wait. The share prices of these stocks have rebounded after a round of adjustments. For example, 1093 has returned to the 10 yuan level. Its highest point last August and September was 11.49 yuan, so it may challenge that previous high again in the future. Everyone should think more about AI application areas to broaden their perspective and better understand the overall market trend. You can also pay attention to CSPC Pharma-related warrants. Today, one of CSPC’s call warrants has reached its price with the code 22986. $BI-CSPC@EC2604A.C (22986.HK)$ , exercise price at 10 yuan, expiring around mid-April this year, with leverage of about 5 times.

The previously mentioned Wuxi Bio (2269) is similar, benefiting from AI assistance in shortening the pharmaceutical process. Market expectations for its profitability are very high, and its stock price continues to rise. Its peak last year was 42.6 yuan, and today it is already close to 40.2 yuan, which makes it worth keeping an eye on. The warrant code for Wuxi Bio is 22714. $BI-WUXI@EC2611A.C (22714.HK)$ , just adjusted in price, with an exercise price of 38.9 yuan, expiring around mid-November this year, with leverage of about 3 times. So, these types of biopharmaceutical and pharmaceutical sector stocks are worth closely monitoring.

Simon: If you want to learn about the latest product information, remember to keep an eye on BOC International's website www.bocifp.com. There, you can see which new products are being launched for each individual stock or sector. You can review the relevant terms to see if they suit your needs.

Simon: Alright, before we wrap up today, let's talk about another stock. I’d like Niki to share some insights on a stock from another industry—China Life (02638). As you can see, China Life's share price hit a high of 33.18 yuan today. Overall, its trend has been steadily recovering since December of last year. In terms of the warrant market, what observations do you have regarding China Life (2628) that you could share with investors?

Niki, Director at BOC International: In fact, China Life (2628) has performed exceptionally well, nearly doubling in value last year. Many might have been focused on consumer, tech, or chip stocks and overlooked how impressive Chinese insurance stocks were last year. This year, Icontinue to be optimistic about Chinese insurance stocks,for several reasons.

First, as you can see, when these insurance companies announced their earnings last year, such as New China Life and China Life (2628), they repeatedly issued profit warnings indicating that their results were better than expected. Therefore, the fundamentals of the entire industry are clearly improving.

Second, as many have noticed, insurance funds are generally medium- to long-term capital. Following the central government’s call, a significant amount of insurance capital entered the stock market a year or two ago, becoming part of the long-term investor community. Recently, both the A-share and Hong Kong markets have shown an upward trend, with the A-share even reaching a ten-year high, and trading volume hitting multi-year highs. As medium- to long-term investors in the A-share and Hong Kong markets, the profitability of these life insurance stocks will be noticeably driven.Therefore, it is believed that this year they will continue to benefit from factors such as an overall upward stock market and active trading. If the A-share continues its upward momentum, it will also be a positive factor for domestic insurance stocks.

There are many sectors worth paying attention to this year, almost too many to keep track of. However, if you're looking for relatively stable investments without too much volatility, you'll find that insurance stocks show a relatively steady upward trend. So for China Life (code 2628), you can look into the warrant code 23200, $BICLIFE@EC2605A.C (23200.HK)$ with a strike price of 35.02 yuan, slightly out-of-the-money, which may soon reach the target price. This warrant expires in mid-May and offers leverage of nearly 6 times. In fact, whether it's China Life, Ping An, or Xinhua Insurance, all these insurance stocks are worth your attention. Due to limited space on our homepage, we cannot display too many products. If you're interested, you can log in to our website to check the terms of products related to the entire industry sector.

Simon: Actually, as Niki just mentioned, many stocks and sectors have performed well during this period, but investors cannot learn about every individual stock in each program, like Alibaba, Meituan, or Xiaomi—stocks that investors pay close attention to. News and updates on such stocks are posted daily on BOC International’s website under different themes. Therefore, investors who want to stay updated on the latest information can either call Niki’s team or frequently visit our website, paying attention to key areas on the homepage to catch brief news on relevant stocks along with product details, ensuring no investment opportunities are missed. That concludes our sharing for today. Thank you, Niki, for your time, and thank you all for listening. See you next time. Bye.

Disclaimer: This article does not constitute any investment advice.

This article is for reference only and does not constitute any investment advice. The market data, opinions, and analysis contained herein may change at any time without prior notice. We shall not be liable for any loss or damage arising from reliance on the information in this article. Technical analysis merely indicates whether certain technical conditions are met; a comprehensive evaluation of asset performance should incorporate additional data. Trading decisions should not be based solely on the content of this article. Please note that past performance is not indicative of future results.

$Hang Seng TECH Index (800700.HK)$ $Hang Seng China Enterprises Index (800100.HK)$ $TENCENT (00700.HK)$ $MEITUAN-W (03690.HK)$ $JD-SW (09618.HK)$ $BABA-W (09988.HK)$ $XIAOMI-W (01810.HK)$ $HKEX (00388.HK)$ $HSBC HOLDINGS (00005.HK)$ $ZHAOJIN MINING (01818.HK)$

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