Zheng Quan Shi Bao·2025-10-03 04:35Core Viewpoint - The recent surge in gold prices has led to significant market interest in gold stocks, particularly in Zijin Gold International, which has seen its stock price double since its listing on September 30, 2023, with a market capitalization exceeding HKD 360 billion [2][4]. Company Overview - Zijin Gold International was formed from the spin-off of Zijin Mining Group, which has a market capitalization of over HKD 780 billion. The company focuses on gold exploration, mining, processing, and sales, inheriting management advantages from its parent company [4][14]. - The IPO of Zijin Gold International set multiple records, including being the largest IPO in the global gold mining industry to date and the largest overseas IPO by a Chinese mining company [4][5]. Stock Performance - Zijin Gold International's stock was included in the Hang Seng Composite Index and related indices, effective October 16, 2023, just two trading days after its listing [5][6]. - The stock saw a first-day closing price increase of 68.46% from its issue price of HKD 71.59, ranking it as the 10th largest first-day gain among Hong Kong IPOs this year [6][8]. - On the second trading day, the stock price rose by 14%, reaching over HKD 144 per share, effectively doubling its initial price [8]. Market Context - The gold market is experiencing a bull run, with gold prices having risen 27% in 2024 and continuing to rise in 2025, with COMEX gold surpassing USD 3,900 per ounce [9][11]. - Factors driving gold prices include economic uncertainty, central bank purchases, and inflation expectations, positioning gold as a hedge against economic and policy uncertainties [11][13]. Parent Company Performance - Zijin Mining Group, the parent company of Zijin Gold International, has also seen its stock price increase by approximately 99.07% this year [14]. - Zijin Mining announced plans to acquire the Raygorodok gold mine in Kazakhstan for USD 1.2 billion, marking another significant step in its international expansion strategy [14][15].