By Megan Cheah


Shares of Chinese mining companies rose Thursday after copper prices hit a record high overnight amid mounting supply concerns.

Zijin Mining Group's Hong Kong stock climbed as much as 4.45% to 34.24 Hong Kong dollars, equivalent to US$4.40, in early trading before paring gains to about 2.0%. Its Shanghai-listed shares were 3.0% higher at midday.

Jiangxi Copper's shares in Hong Kong rose 2.0%, trimming an earlier gain of 5.0%, while its China stock added 3.1%. Hong Kong-listed MMG, which is majority owned by state-owned China Minmetals, was recently 0.9% higher after rising 6.0% earlier.

The advances came as copper--a crucial industrial metal used in electric vehicles and power grids--climbed to new highs on Wednesday, with the three-month contract on the London Metal Exchange surpassing US$11,500 a metric ton. The base metal was recently trading 0.2% higher.

Traders have been increasing shipments to the U.S. on fears that the Trump administration could impose new copper-related tariffs next year, squeezing supply in other markets. Disruptions at major mines worldwide have also led copper producers, such as European mining giant Glencore, to cut their production forecasts.

Rising expectations of a Federal Reserve rate cut in December are also supporting copper prices, as lower borrowing costs usually boost economic activity, increasing demand for the commodity.

Higher prices bode well for Chinese mining stocks, analysts said.

DBS Group Research analyst Lee Eun Young has Zijin Mining and MMG at the top of her sector pecking order, with buy ratings on both.

Copper is likely to make up 43% of Zijin Mining's projected gross profit this year, and the ample reserves could help drive a 28% earnings compound annual growth rate by 2027, she said. She also sees MMG as an ideal proxy for copper prices, as 74% of its revenue is derived from the metal.

Citi analysts led by Jack Shang maintained a buy rating on Zijin Mining, saying its copper assets appear undervalued. Among pure-play copper companies, the bank likes MMG over CMOC Group for its more attractive valuation.


Write to Megan Cheah at megan.cheah@wsj.com


(END) Dow Jones Newswires

12-03-25 2257ET