Chalco shares jump 6.3% as stake increase and bauxite outlook lift sentiment

Stock image for referential purposes only

Shares of Aluminum Corporation of China (Chalco) rallied during the latest trading session after investors responded positively to plans by its parent company to increase its shareholding, alongside improving aluminium market fundamentals.

The company's Hong Kong-listed shares gained 6.28 per cent to close at HKD 8.63 (USD 1.10), with trading volume reaching 93.09 million shares. Despite the latest rally, the stock remains 29.09 per cent lower for the year to date.

Stake increase boosts investor confidence

Market sentiment strengthened after Chinalco announced plans to increase its stake in Chalco by up to USD 300 million, signalling confidence in the company's long-term prospects.

The share price also received support after JPMorgan placed a buy order for more than 2 million shares, while a coordinated market support initiative by 15 Chinese state-owned enterprises further improved investor sentiment.

Explore: The most comprehensive and forward-looking industry-focused report – Global Bauxite & Alumina Market Forecast to 2036: Supply–Demand, Trade Flows & Price Outlook

The programme includes share buybacks, increased shareholdings and dividend measures with a combined value of up to 30 billion yuan (USD 4.43 billion). Strong aluminium market lifts the outlook, and improving conditions across the aluminium industry also helped lift the stock. 

Record bauxite exports from Guinea in the first half of 2026 and firm aluminium prices have buoyed expectations for the company’s upstream operations, helping Chalco’s shares remain close to multi-month highs. 

Diversified aluminium producer founded in 2001 and based in Beijing, Chalco operates across the aluminium value chain, including bauxite mining, alumina refining, primary aluminium smelting and the production of aluminium alloys and carbon products. The company also has interests in energy, trading and logistics.

According to Smartkarma's assessment, Chalco continues to benefit from strong dividend and value characteristics, while its growth profile remains favourable. However, the analysis also points to comparatively weaker resilience and momentum, reflecting ongoing market volatility. 

For more in-depth insights and exclusive analysis on the global aluminium industry, explore the e-Magazine - Mine to Market: ALuminium Producers & Manufacturers 2026