Chalco Stock Surges on Parent's Planned Stake Increase and Record Profit Outlook

Shares of Aluminum Corp. of China (Chalco) surged in Monday trading after its controlling shareholder unveiled a substantial plan to increase its stake in the company, a move reinforced by a forecast for record semi-annual profits.

Chalco's Hong Kong-listed shares closed up 4.7% at HK$7.97 on July 20, 2026, after touching an intraday high of HK$8.08.

Dual Catalysts Drive Rally

The rally was driven by two key developments disclosed by the state-owned aluminum producer. First, its parent company, Chinalco Group, announced a plan to purchase company shares on both the Shanghai and Hong Kong exchanges over the next 12 months.

According to a market filing, the planned investment includes:

• A total value between RMB 10 billion and RMB 20 billion.
• A purchase cap of 2% of the company's total share capital.

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This signal of confidence from the controlling shareholder was amplified by a strong preliminary earnings report. Chalco projected its net profit for the first half of 2026 to be between RMB 11.2 billion and RMB 12.2 billion, representing a year-on-year increase of 58% to 73%. The company described this as the best interim result in its history.

Coordinated Support for Chinese Equities

Chinalco's move was not an isolated event. It was part of a coordinated wave of stake-increase and share buyback announcements from several major Chinese state-owned enterprises (SOEs) released before the market opened on Monday.

Market observers interpreted these simultaneous actions as a deliberate effort by state-backed capital to stabilize investor sentiment and affirm the long-term value of Chinese blue-chip equities. The broader market was also positive, with Hong Kong's Hang Seng Index gaining roughly 2.1% during the session.