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

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

Review of Tuesday's comments:

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 CBBCs. Let's start with the Hang Seng Index. For now, the index has actually reached some highs but has since pulled back slightly. However, overall it is still trending upward. For instance, looking at the market sentiment over the past couple of days, what do investors think about the Hang Seng Index?

BOC International Director Niki: Looking at the index performance, it has indeed been very impressive, reaching a high of 27,143 points, which is very close to November’s peak near 27,188 points. However, after touching these highs, the upward momentum narrowed, meaning the overall uptrend seems less strong compared to before. But one thing to note is that the overall trading volume in the market remains very active.In the recent period, this is also a relatively high level in terms of market trading volume and activity. If you’ve been following the A-share market, you would have seen related news indicating that the trading volume in A-shares has been continuously climbing, nearing 3.6 trillion yuan. Therefore, you can see that the overall stock market is very heated, and the performance of A-shares and Hong Kong stocks is consistent.

After the Hang Seng Index broke through 27,100 points, as the gains narrowed, some investors started to become more conservative. After all, the index surged nearly 1,000 points in just about a week, which is quite significant. Thus, around the 27,000-point level, there may be a slight adjustment. Therefore, investors didn’t blindly chase the upward trend by buying bull contracts.On the contrary, when the market surged to 27,100 points, many investors cashed out their Hang Seng Index bull contracts, long position tools, or call warrants, locking in profits before switching to buy Hang Seng Index bear contracts or short position instruments to prepare for potential upward movement after the index adjusts from its highs. So today’s overall capital flow was mainly into short positions.When referring to market sentiment, you can pay attention to this point.The 27,000-point level is, after all, an important threshold, and it’s estimated that the bulls and bears will continue to battle here for another day or two. Since the market rose over a thousand points in just a few days, it needs some time to digest these gains.

Simon: So if investors understand market sentiment as Niki just mentioned, such as checking the distribution of bull-bear contracts, they can visit the BOCI website at www.bocifp.com, where the latest situation of the Hang Seng Index bull-bear contract distribution chart is clearly visible on the homepage.

Simon: Alright, let’s move on to discuss individual stocks. The first one we want to explore today is Zijin Mining (02899).$ZIJIN MINING (02899.HK)$This stock's overall trend has actually been pretty good. Niki, you also mentioned that this sector and this stock have had continuous fund inflows for a while now. Meanwhile, the stock price performance has been quite impressive, hitting a high of 40.7 yuan on Tuesday. From the perspective of the CBBC market, what can you share with investors regarding stocks like Zijin Mining (2899)?

Niki, Director at BOCI: Actually, regarding precious metal-related stocks such as Zijin Mining, Shandong Gold, Jiangxi Copper, etc., my outlook remains relatively positive for this year. As I mentioned earlier in our discussions, starting from 2026...$SD GOLD (01787.HK)$My view on Jiangxi Copper and others remains relatively positive this year. I also mentioned during our previous conversations that at the beginning of 2026,Everyone can see that in terms of market dynamics, the prices of resources continue to be pushed higher, even making precious metals a type of safe-haven asset.So regarding gold prices, I personally remain optimistic. I remember sharing this when I was on a program with Simon last year—I mentioned as early as the middle of last year—that international gold prices could rise to $5,000 per ounce; currently, they have already reached $4,600 per ounce, very close to this target. Therefore, from a medium- to long-term perspective, it remains promising.

So for investors, the simplest investment tool to participate in this market is individual stocks. In addition, leverage can also be utilized by considering related warrant instruments.Everyone can allocate a portion of precious metals or commodity assets in their portfolio.。From a regional perspective, each region will place more emphasis on nearby resource allocation, which will also drive up resource prices. Everyone should pay more attention to these opportunities.In terms of product selection, you can focus on related warrant instruments. For example, call warrants for Zijin Mining can choose product code 21590, $BIZIJIN@EC2604B.C (21590.HK)$ with a strike price of 48.65 yuan and an expiry in mid-April this year, offering leverage of about 7 times. On Tuesday, Hong Kong stocks pulled back after rallying, with some major tech stocks seeing slight corrections, but precious metal stocks like these are still holding firm near recent highs, showing relatively strong buying interest.

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

Niki, Director of BOCI: Yes, during this period, judging from fund flow data, investors may still be concentrated in the market's hot sectors, such as AI, chips, and tech stocks. However, these commodity stocks have shown signs of an upward trend, with increasing street volume.Although not yet among the top three sectors in terms of capital inflow popularity, the overall uptrend in street volume indicates that a group of investors has begun to gradually pay attention to these stocks, which are not often seen in newspapers. Moreover, some investors have already started to deploy capital in advance.Although Jiangxi Copper's name suggests it is purely a copper business, around 20%-30% of its profits actually come from gold operations. Therefore, if investors are optimistic about Jiangxi Copper, apart from monitoring the stock itself, they can also refer to related derivative products such as warrant code 27366. $BIJIANC@EC2604B.C (27366.HK)$ This is a call warrant for Jiangxi Copper with a strike price of 52.88 yuan, expiring around mid-April this year. Its leverage performance is also good, offering nearly 5x leverage.

Simon: Speaking of products, I’d like to ask something else. Every day, BOCI launches new products. Besides checking on their website, if I’m interested in a certain underperforming stock or industry sector, can I call during market hours to inquire about any new product offerings?

Niki, Director at BOCI: Yes, you can. If it’s convenient, you may call our hotline at 00+852 3988 6909. Of course, the most convenient way is to log into ourwebsite www.bocifp.com, BOCI’s warrants website, where you can easily search for information. Our site updates all the latest product tools one day before the new product listing. So if you want to do your homework ahead of time and check if there are suitable terms available, simply log onto our product website and search. For instance, if you prefer warrants or bull/bear contracts, search for 'call warrants' to find warrant tools; for bull/bear certificates, you can locate desired tools through the bull/bear certificate search bar on the homepage. Of course, if searching while the market is open isn’t convenient, calling us directly is the best option. Dial 39886909 to reach me, Niki, or my colleagues, who will be happy to assist you.

Simon: Alright, since the hotline is so accessible, let me ask you directly now. I’d like to discuss another stock with you — CSPC Pharma (01093). $CSPC PHARMA (01093.HK)$ I remember CSPC Pharma’s movement was quite impressive on Tuesday, reaching a high of 10 yuan. To be honest, 1093 has been a stock you’ve shared many insights on recently, including capital flows. Now that it has surpassed 10 yuan, what is the sentiment among investors regarding 1093’s call warrants in the short term?

Niki, Director of BOC International:In fact, entering 2026, financial news frequently highlights AI and technology-related keywords. However, companies that truly generate profits and bring direct benefits by applying AI to their businesses are those integrating AI into specific industries. Standalone AI tools or platforms may only serve auxiliary functions without generating substantial profits. But when AI technologies are applied to biopharmaceuticals and innovative drug development, they significantly shorten the R&D process and lifecycle. Therefore, over the past couple of years, China’s innovative drugs sector, along with associated licensing sales volume and value, have reached multi-year highs. Investors should keep an eye on biopharma companies。

such as CSPC Pharma (1093), Wuxi Bio (2269), and others. After a period of adjustment, these stocks have seen some recovery. For example, 1093 has rebounded back to 10 yuan, after peaking at 11.49 yuan in August-September last year. Thus, it could potentially challenge previous highs again. Investors should broaden their perspectives on AI applications to better understand overall market trends. Keep an eye on CSPC Pharma’s warrant tools as well. Today, a call warrant for CSPC Pharma reached its target price, warrant code 22986. $BI-CSPC@EC2604A.C (22986.HK)$ , with a strike price of 10 yuan, expiring around mid-April this year, offering leverage of approximately 5 times.

Wuxi Bio (2269) mentioned just now $WUXI BIO (02269.HK)$ is also benefiting from AI assistance in shortening the drug-making process. The market has very high expectations for its profitability, and its share price continues to rise. Its peak last year was 42.6 yuan, and today it is already near 40.2 yuan, making it worth keeping an eye on. The warrant code for Wuxi Bio is 22714, recently adjusted, with a strike price of 38.9 yuan, expiring around mid-November this year, providing leverage of about 3 times. So these types of biopharmaceutical and pharmaceutical sector stocks are worth closely watching.

Simon: Alright, before we wrap up, let’s discuss one more stock. I’d like Niki to share insights on another industry stock, China Life (02628). $CHINA LIFE (02628.HK)$ As you can see, China Life's share price hit a high of 33.18 yuan on Tuesday. The overall trend since December last year has been a slow and steady recovery. Regarding the warrant market for 2628 China Life, what observations do you have to share with investors?

Niki, Director of BOC International: Actually, 2628 China Life has performed exceptionally well, nearly doubling in value last year. Many might have been focusing on consumer, tech, or chip stocks and didn't expect Chinese insurance stocks to perform so brightly last year. This year, I continue to be optimistic about Chinese insurance stocks for several reasons.

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

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.

Secondly, you may have noticed that insurance funds are typically medium to long-term investments. A couple of years ago, significant amounts of insurance capital entered the stock market, becoming part of the long-term investor base.

Recently, both the A-share and Hong Kong markets have shown continuous upward trends, with the A-share even reaching a ten-year high, and trading volumes hitting multi-year highs. As medium to long-term investors in the A-share and Hong Kong markets, life insurance stocks will see clear benefits. Therefore, I believe they will continue to benefit from the overall upward trend in the stock market, active trading, and if the A-share maintains its upward momentum, it will 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, $BICLIFE@EC2605A.C (23200.HK)$ The call warrant, with a strike price of 35.02 yuan, slightly out-of-the-money, may reach the strike price sooner than expected. This call warrant expires in mid-May this year, with leverage close to 6 times. Whether it’s China Life, Ping An $PING AN (02318.HK)$ , or Xinhua Insurance $NCI (01336.HK)$ Insurance stocks like these are worth everyone's attention. Due to limited space on our homepage, we can't 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 mentioned earlier, many stocks and sectors have performed well during this period. However, investors cannot learn about all individual stocks in each program, such as Alibaba. $BABA-W (09988.HK)$ , Meituan $MEITUAN-W (03690.HK)$ , Xiaomi $XIAOMI-W (01810.HK)$ These are the stocks that investors are paying attention to. News and individual stock information like this are updated daily on Bank of China International’s website with different themes. So if investors want to stay informed about the latest information, besides calling Niki's team, they can also log in to the website more often and pay attention to important sections on the homepage. This way, they can see brief news about relevant stocks and also understand corresponding product information, ensuring they don’t miss any investment opportunities. That concludes our sharing for today. Thanks to Niki for her time and thanks to everyone 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.

$Hang Seng TECH Index (800700.HK)$ $Hang Seng China Enterprises Index (800100.HK)$ $HKEX (00388.HK)$ $TENCENT (00700.HK)$ $XIAOMI-W (01810.HK)$ $BABA-W (09988.HK)$ $NTES-S (09999.HK)$ $BILIBILI-W (09626.HK)$ $TRIP.COM-S (09961.HK)$

456K Views