[BOC Guest] Hang Seng Index, Zijin Mining, Jiangxi Copper, CSPC Pharma, Wuxi Bio, China Life - Post-market Analysis on January 13

Simon: Niki, hello! It’s time for our weekly stock discussion again, and I also want to ask you some questions about CBBCs (Callable Bull/Bear Contracts). Let's start by discussing...$Hang Seng Index (800000.HK)$

...as you can see, today's (January 13) Hang Seng Index has temporarily reached some high levels but has since pulled back slightly. However, overall it remains in an uptrend. For instance, if we look at the overall market sentiment over the past two days, how do investors view the Hang Seng Index?

Niki, Director of BOC International: Actually, in terms of index performance, today's index did shine brightly, reaching a high of 27,143 points, which is very close to the November peak of around 27,188 points. However, after touching these highs, the gains narrowed somewhat, indicating that the upward momentum isn't as strong as before. That said, it's important to note that the overall market trading volume remains highly active. Of course, we're still recording and the stock market hasn't closed yet. As of now, the trading volume of Hong Kong stocks has already reached over HKD 276 billion, which represents a relatively high level of market activity recently. If you've been following the A-share market, you’ll also see related news reporting that the trading volume in the A-share market has been continuously rising, nearing RMB 3.6 trillion. So, you can see that the overall market enthusiasm is very high; both A-shares and Hong Kong stocks are showing consistent performance.

After breaking through 27,100 points today, with the narrowing of gains, some investors have started to become more conservative. After all, the index has 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, instead of blindly chasing bullish positions, many investors have been taking profits on their Hang Seng Index bull contracts, long-position instruments, or call warrants when the market hit 27,100 points, locking in gains before switching to buy bearish contracts or short-position tools, positioning for a rebound after the index consolidates from its high levels. Hence, today’s overall capital flow is mainly into bearish positions. When gauging market sentiment, this aspect can be referenced. The 27,000-point level is indeed a key threshold, and the tug-of-war between bulls and bears at this position may continue for another day or two, given that the market surged over a thousand points in just a few days, necessitating 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 BOCIFP.comOn the BOC International website, you can clearly see the latest situation of the Hang Seng Index bull and bear certificate street cargo distribution map right on the homepage.

Simon: Alright, let’s move on to talk about individual stocks. The first stock I want to discuss with everyone today is Zijin Mining (code 02899). This stock's overall trend has been quite good. Niki, you also mentioned that this sector and this particular stock have had inflows for some time now. Meanwhile, the share price performance has also been impressive, hitting a high of 40.7 yuan earlier today. From the perspective of the CBBC market, what insights can we offer investors regarding a stock like 2899?

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.

Therefore, for investors, the simplest investment tool to participate in this market is stocks. Besides that, they can also use leverage and consider related CBBC tools. Over the past year or two, with global markets being relatively volatile, people can allocate a portion of precious metals or commodity assets in their portfolios. After all, everyone experienced last April's trade disputes, witnessing the uncertainties involved. In the next ten or twenty years, the global trade landscape may change, becoming less free-flowing than before. Regionally, each area will place more importance on nearby resource allocation, which could drive up resource prices. Investors should keep an eye on these opportunities. For product selection, you can pay attention to related CBBC tools. For instance, call warrants for Zijin Mining can be selected with the code 21590, with a strike price of 48.65 yuan, expiring by mid-April this year, offering a leverage of about 7 times. Today, after the Hong Kong stock market surged, it retreated slightly; some major tech stocks also pulled back modestly, but these kinds of precious metal stocks remain firmly at recent highs, showing relatively strong buying support.

Simon: Just now, Niki, you also mentioned that apart from 2899, Jiangxi Copper (00358) is also drawing investor attention in the CBBC market, right?

BOC International Director Niki: Yes, according to recent capital flow data, investors are still concentrated on popular sectors such as AI, chips, and tech stocks. However, these commodity stocks are showing signs of upward movement, with increasing street volumes. Although they haven’t reached the top three in terms of popularity yet, the rising trend in street volumes indicates that some investors are starting to slowly focus on these lesser-known stocks. In terms of capital, some investors have already begun early positioning. Despite its name, Jiangxi Copper derives approximately 20-30% of its profits from gold-related businesses. So if investors are optimistic about Jiangxi Copper, besides focusing on the stock itself, they can also refer to related CBBC products. For example, the Jiangxi Copper call warrant with code 27366, a strike price of 52.88 yuan, expiring around mid-April this year, offers decent leverage of about 5 times.

Simon: Speaking of products, I’d like to ask, BOC International launches new products every day. Apart from checking on the website, if I’m interested in a certain obscure stock or sector, can I call during market hours to inquire about related new products?

BOC International Director Niki: Yes, you can. If convenient, you can call our hotline at:39886909. Of course, the most convenient method is to log into our website 24/7 at www.BOCIFP.com www.BOCIFP.com, the BOC International CBBC website, where a quick search will lead you to the information. Our website updates all new product details the day before they go live, so if you want to do your research ahead of time to find products with suitable terms, just log in and search. For example, if you're interested in CBBCs or bull/bear certificates, searching for 'warrants' will bring up CBBC tools, while the bull/bear certificate search bar on the homepage helps you find your desired instruments. Of course, if searching during market hours isn't convenient, calling us directly at 39886909, asking for me, Niki, or any of my colleagues, will get your questions answered.

Simon: Alright, since hotline calls are so convenient, I'll just ask you directly now. I want to discuss the next stock, CSPC Pharma (1093), with you again. I remember that CSPC Pharma’s performance today was quite good, reaching a high of 10 yuan. To be honest, you've shared quite a few insights on this stock and the market capital flow situation with us during this period. Now that it has surpassed 10 yuan, what is the sentiment among investors towards 1093 in terms of warrants recently?

BOCI director Niki: Actually, entering 2026, you often see terms like AI and technology when reading financial news. However, companies that truly apply AI to their operations and generate profits and direct benefits are those integrating AI into specific industries. Simple AI tools or platforms may only serve as auxiliary functions without generating substantial profits. But if AI technology is applied to biopharmaceuticals and innovative drugs, it can significantly shorten the R&D process and cycle. Therefore, over the past year or two, China's innovative drug sector, along with related licensing sales volume and amounts, have reached multi-year highs. Investors should pay more attention to these types of biopharmaceutical companies, including CSPC Pharma (1093) and Wuxi Bio (2269). After a round of adjustments, their stock prices have rebounded; for example, 1093 has returned to 10 yuan. Its previous high last August and September was 11.49 yuan, so there is potential for it to challenge that level again. By considering broader applications of AI, investors will better understand overall market trends.

You may also want to look at derivative products related to CSPC Pharma. Today, one of its call warrants has reached its strike price. The code is 22986, with an exercise price of 10 yuan, expiring around mid-April this year, offering about 5x leverage. As mentioned earlier, Wuxi Bio (2269) is similar, benefiting from AI-assisted reductions in drug development cycles. Market expectations for its profitability are very high, and its share price continues to rise. Its high last year was 42.6 yuan, and today it is trading near 40.2 yuan, making it worth continued attention. The call warrant code for Wuxi Bio is 22714, which was recently repriced, with an exercise price of 38.9 yuan, expiring around mid-November this year, providing about 3x leverage. Therefore, stocks in the biopharmaceutical and pharmaceutical sectors deserve close monitoring. For the latest product information, remember to keep an eye on BOC International’s website www.BOCIFP.com, where you can find new products for each individual stock or sector, review relevant terms, and assess suitability.

Alright, before we conclude today, let’s talk about another stock. I’d like Niki to share her thoughts on a stock from a different industry, China Life (2628). You can see that China Life’s share price reached a high of 33.18 yuan today. Overall, from December last year until now, its trend has been steadily recovering. Regarding the warrant market for China Life (2628), do you have any observations to share with investors?

Actually, China Life (2628) has performed exceptionally well, nearly doubling last year. Many investors were probably focused on consumer stocks, tech stocks, and chip stocks, not expecting Chinese insurance stocks to perform so remarkably last year. I remain optimistic about Chinese insurance stocks this year for several reasons. First, when these insurance companies announced their results last year—such as New China Life and China Life (2628)—they repeatedly issued profit warnings indicating their performance was better than expected, showing clear fundamental improvements across the industry. Second, insurance funds are generally long-term investments. Encouraged by central authorities, a significant amount of insurance money entered the stock market a year or two ago, becoming part of the long-term investment community. Recently, both A-shares and Hong Kong stocks have shown upward trends, with A-shares reaching a ten-year high and trading volumes hitting multi-year highs. As long-term investors in A-shares and Hong Kong stocks, life insurance stocks will benefit significantly from these trends. Thus, I believe they will continue to gain from the overall upward momentum of the stock market and active trading. If A-shares maintain their upward trajectory, it would also be a positive factor for domestic insurance stocks.

Many sectors deserve attention this year, almost too many to keep track of. However, if you're looking for relatively stable investments without enduring large fluctuations, insurance stocks tend to exhibit steady upward movements. So, for China Life (2628), consider the call warrant with code 23200, with an exercise price of 35.02 yuan, slightly out-of-the-money, but it might reach the strike price soon. This warrant expires in mid-May this year and offers nearly 6x leverage. In fact, whether it's China Life, Ping An, or New China Life, all these insurance stocks are worth watching. Due to limited space on our homepage, not all products can be displayed. If interested, log in to our website BOCIFP.com to explore the full range of product terms related to this sector.

As Niki mentioned earlier, many stocks and industry sectors have performed well recently, but investors can't possibly learn about every stock during each show, such as Alibaba, Meituan, Xiaomi, and other closely watched stocks. News updates and stock information are published daily on BOC International's website under various themes. Therefore, investors seeking the latest information can either call Niki’s team or visit the website frequently to check important sections on the homepage for brief news on relevant stocks and corresponding product information, ensuring no investment opportunities are missed.

Alright, that concludes today’s sharing session. Thank you, Niki, for your time, and thank you, everyone, for tuning in. Thank you, and see you again 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.

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