Zijin Gold International (02259.HK) Hot Stock Analysis: Short-term Decline Driven by Gold Price Fluctuations

Comprehensive Analysis\nZijin Gold International (02259.HK) is an international gold business platform spun off from Zijin Mining, with a market capitalization of approximately HK$58.154 billion [2]. Its business is highly correlated with gold prices. On December 29-30, 2025, the company’s stock price became a hot stock in Hong Kong due to sharp fluctuations in international gold prices: COMEX gold fell by over 1.8% intraday on December 29, and the gold stock sector continued its decline on December 30, with the company’s stock price dropping over 5% intraday [1]. Short-term negative catalysts include: Soochow Securities pointed out that the US’s expansionary fiscal and monetary policies in Q1 2026 may delay the Fed’s rate cut pace [3]; Trump’s planned visit to China in April 2026 improved market risk appetite, weakening the safe-haven demand for gold [3]. On December 29, the company’s stock price closed down 5.86% to HK$144.5, with significantly increased trading volume that day [3]; the 52-week high/low of the stock price was HK$158.9/HK$111.0 [2].\n\n### Key Insights\n1. : The gold stock sector came under collective pressure; Shandong Gold (01787.HK) and Zhaojin Mining (01818.HK) fell by over 5% in the same period [1], reflecting the sector’s consistent response to gold price changes.\n2. : As a spun-off platform, Zijin Gold International’s business is concentrated in the international gold sector, and its performance has a higher correlation with gold prices than other companies in the same industry [4].\n3. : In the short term, market sentiment is negative due to falling gold prices, but institutions like UBS are bullish on gold prices in the long term, predicting that gold prices will reach $5,000 per ounce in the first three quarters of 2026 [1], indicating a divergence between short-term fluctuations and long-term trends.\n\n### Risk and Opportunities\n:\n- Short-term gold price fluctuations directly affect the company’s performance and stock price [3]\n- Changes in Fed rate cut expectations will affect the opportunity cost of gold [3]\n- Events like Trump’s visit to China may further improve market risk appetite, weakening the safe-haven demand for gold [3]\n- Current valuation is high: P/E ratio (TTM) 63.09x, P/B ratio 7.29x [2]\n\n:\n- Long-term gold price upside potential: Institutions predict gold prices will reach $5,000 per ounce in the first three quarters of 2026 [1]\n- As Zijin Mining’s international gold business platform, the company has resource and technical advantages [4]\n\n### Key Information Summary\n- Stock Code: 02259.HK\n- Core Driving Factor: International gold price fluctuations\n- Recent Stock Performance: Consecutive declines on December 29-30, 2025; intraday decline over 5% on December 30\n- Key Support Levels: HK$140 (near recent low), HK$111 (52-week low)\n- Key Resistance Levels: HK$150 (short-term rebound resistance), HK$158.9 (52-week high)\n- Core Focus Factors: Gold price trends, Fed interest rate policy, market risk appetite\n\nNote: This report is a synthesis and analysis of information and does not constitute investment advice