Jiangxi copper license is expected to break up

Hong Kong stocks went sideways in the low five consecutive trading days and the trend was lacking. In the past two days, the fluctuations in the Hang Seng Index have been greatly increased, and the volatility of the day has approached 300 points. The above phenomenon can reflect the extent to which both the long and short sides of the current market have entered the game with intense heat, and it is estimated that the market will soon make a directional choice.

Currently, the Hang Seng Index is at a low level in the middle of the year and it is actually behind the performance of the external stock market. The reasons for this are believed to be related to the negative factors such as the frequent reduction of foreign capital by Chinese companies. In July alone, foreign-funded institutions including Temasek and Morgan Stanley slashed domestic banks’ silver stocks, buoying nearly HK$50 billion. In addition, following the Moody's "Red Flag" report last week, Fitch, another international rating agency, recently joined the ranks of "punitive" Chinese stocks, involving 35 Chinese-invested shares. Since many Chinese shares fell sharply last week after Moody's "Red Flag" report, the Fitch report's lethality was less than that of Moody's, but some Chinese stocks still fell more than 5%. In the short term, Hong Kong stocks need to resist the pressure brought by foreign capital to sing the air-capital stocks. It is estimated that there will be a greater likelihood that the market will choose to adjust downwards.

Since the debt problems in the United States and Europe have still not been resolved, Fitch has once again warned of downgrading the U.S. rating outlook and other factors. The risk aversion of the market has increased. Gold's hedging function is again sought after by investors. New York gold bullion was created on Monday. A record high, boarded the $ 1600 platform. Driven by the demonstration effect of gold's surge, other commodity prices have also strengthened. Among them, the Shanghai copper main contract price hit a new high in nearly three months on Tuesday.

In terms of variety selection, Jiangxi Copper (0358.HK) benefited from both rising copper prices and gold prices. Its stock price performed well. It rose more than 2% to HK$27.7 yesterday, almost equal to the high of HK$27.85 in more than four years. Shuangjiang Copper has the power to break through this high level. If you are optimistic about Jiangxi Copper, you can pay attention to its purchase certificate 29395, the exercise price of 28.88 Hong Kong dollars, due in October. However, investors are reminded that the investment risk of warrants can be huge and can result in a total loss of principal.