China’s gold mining sector roared back into the spotlight this week after Zijin Gold International – the overseas-focused spin-off of China’s giant Zijin Mining – made a thunderous debut on the Hong Kong Stock Exchange.
The IPO raised $3.2 billion, and shares rocketed as much as 66% in early trading, closing well above their issue price.
[adinserter block="1"]The retail tranche was reportedly oversubscribed more than 241 times, and institutional interest was nearly 20× more than anticipated.
The flood of capital into Zijin Gold reflects a growing appetite for safe haven assets as gold prices hit record highs amid global economic uncertainty, expectations of U.S. rate cuts, and ongoing geopolitical tension.
Zijin priced the offering at HK$71.59 ($9.20) per share, and shortly thereafter shares climbed to HK$119 ($15.29) before settling near HK$114.80 ($14.75), a roughly 60% gain on the first day. The performance places the IPO among the strongest in Hong Kong in the past decade.
Zijin Gold’s parent, Zijin Mining, retains the vast majority of the spin-off and will continue to have exposure to commodity cycles and geopolitical risk.
Zijin Gold’s listing also points to China’s strategy of consolidating and capitalizing its overseas mining assets through public markets in Hong Kong, opening a wider pipeline for global investor capital.
Bloomberg reports that a team of Goldman Sachs analysts led by Daan Struyven says that the inflows into bullion-backed exchange-traded funds (ETFs) have exceeded the estimates in their model used to forecast $4,000 per ounce for mid-2026.
The model also forecasts $4,300 per ounce for the end of next year, while the analysts now say that there is a “large upside risk” that gold exceeds their estimates.
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