Hong Kong Stock Market Movement | Non-ferrous metals lead the decline, precious metals face selling pressure amid liquidity squeeze, institutions remain optimistic about supply and demand improvement, expecting continued performance of related assets

CITIC Securities APP reports that non-ferrous metal stocks led the decline. As of the time of writing, China Nonferrous Mining (01258) fell 5.27% to HKD 14.91; Zijin Mining (02899) dropped 4.98% to HKD 42.78; Luoyang Molybdenum (03993) declined 4.71% to HKD 22.24; Minmetals Resources (01208) decreased 4.54% to HKD 9.89.

On the news front, global financial markets suddenly experienced a “risk-off” sentiment, leading to a sell-off in precious metals. On Thursday, gold prices saw a maximum intraday drop of 4.1%, and silver plunged as much as 11%. From an institutional perspective, the uncertainty related to AI has triggered risk aversion in the stock market, which is spilling over into the metals market. Macro strategist Michael Ball pointed out that this round of decline resembles a “momentum deleveraging” triggered by algorithmic trading and systemic strategies, especially as programmed trend funds sharply cut positions after key price levels were breached.

Orient Securities believes that liquidity shocks have been largely absorbed, and the pricing of various metals is expected to return to fundamentals. Regarding industrial metals, the short-term setback of the loose narrative does not change the overall direction of interest rate cuts. Over the past week, copper and aluminum inventories have continued to accumulate, but the pace of accumulation has slowed, and downstream processing feedback has weakened. Operating rates during the off-season are still decent. As prices undergo short-term adjustments, downstream acceptance is beginning to improve significantly. Overall, varieties with improved supply and demand fundamentals are expected to continue performing well.