A new strategic investment has surfaced within the Chinese aluminium industry, with GLENCORE and Hillhouse Investment plans to acquire Chuangxin Industries during its upcoming IPO to be held in Hong Kong. This further signals an uplift in the Chinese aluminium smelter's potential as metal prices keep climbing.
The asset manager and the Swiss commodity giant will be participating as the cornerstone investors, and as per the sources, but they wish to remain unidentified while conducting a discussion of a private matter.
The IPO buyers who are allocated for the guaranteed share, as referred by the cornerstone investors, will be holding the stock for a specific time frame.
Moreover, as per some people's saying, the China Hongqiao Group, which is deemed to be the country's largest private aluminium producer, will be the cornerstone investor in this plan. However, this has not yet been confirmed.
Chuangxin, located in China's Inner Mongolia, has planned to commence the collection of the investor orders at the earliest on Friday, November 14, 2025. The IPO may fetch a total of USD 700 million.
With the support of the government-imposed capacity ceiling along with a resilient demand from renewable energy, the Chinese aluminium smelters, which are responsible for half of the global primary aluminium, are now growing with elevated profitability.
In consideration of the London Metal Exchange (LME) aluminium pricing, aluminium is considered to be the strongest performing metal in the past few months, where in the last week it reached a three-year high.
Given this, people forecast that there can be changes in the investment and details of the deal while the deliberations are in progress. However, there has been no significant comment released by Glencore's representatives alongside Hillhouse and Chuangxin.
Chuangxin's largest consumer, which is Shanghai-listed Innovation New Material Technology, headed by Cui Lixin, the chairman of Chuangxin, in a filing with the Hong Kong stock exchange, has enunciated that Chuangxin leans on the overall alumina and primary aluminium production for its business.
By the end of 2025, the Hong Kong listings are set to close with a four-year high, with the proceeds plausibly exceeding USD 40 billion as per Bloomberg's Intelligence estimates. However, many of the recent listings have failed upon debuts, which shakes the investors' confidence, making them highly sceptical after a banner year.
As of now, Chuangxin’s IPO has been arranged by China International Capital and Huatai Securities.
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