China's Zijin Gold surges over 60% in Hong Kong debut after world's second-largest IPO this year

Core Viewpoint - Zijin Gold's shares surged over 60% following its trading debut in Hong Kong, raising approximately $3.2 billion, marking it as the world's second-largest IPO this year [1][3]. Group 1: Company Overview - Zijin Gold is the overseas gold-mining arm of China's Zijin Mining Group, which operates all of its gold mines outside of China [3]. - The company produced 1.3 million ounces (40.4 tonnes) of gold in 2024, ranking ninth globally in reserves [5]. - Zijin Mining is the largest producer of mined gold in China and has a global footprint that includes Central Asia, South America, Oceania, and Africa [4]. Group 2: Market Context - The IPO of Zijin Gold comes at a time when spot gold prices have recently surpassed $3,800 per ounce, driven by strong safe-haven demand and global economic uncertainty [2]. - The listing is part of a resurgence in Hong Kong's IPO market, which raised about $14.1 billion in the first half of 2023, reflecting a 695% year-on-year increase from the same period in 2022 [3]. Group 3: Strategic Moves - In April, Zijin Mining announced a restructuring to carve out its overseas gold operations into the new Zijin Gold unit, aiming to sharpen its focus on gold [4]. - Major investors in the IPO included Singapore's sovereign wealth fund GIC, Hillhouse's HHLRA, and BlackRock Funds [3].