Shares of Zijin Gold International soared on their Hong Kong debut Tuesday, jumping more than 60 percent after raising over US$3 billion in one of the world’s largest initial public offerings (IPOs) this year.
The strong market entry comes amid record-high gold prices, fueled by safe-haven demand, expectations of U.S. interest rate cuts, and concerns over a potential U.S. government shutdown. Gold peaked at $3,867.89 on Tuesday.
A unit of Zijin Mining, China’s largest miner, Zijin Gold surged 67 percent to HK$120, giving the company a market value of about HK$300 billion (US$38.6 billion). The firm, which operates eight mines across Central Asia, South America, Oceania, and Africa, said IPO proceeds will be used to acquire a gold mine in Kazakhstan and to upgrade existing mines over the next five years.
The company highlighted its “strong cost management capability,” noting several mines turned profitable soon after acquisition.
Global demand for gold is set to rise as central banks seek safe assets for value preservation and risk diversification, consultancy Frost & Sullivan said. It added that declining ore quality and rising extraction costs would also support prices.
Hong Kong Financial Secretary Paul Chan noted IPOs have raised nearly HK$150 billion so far in 2025, ranking the city top globally. Deloitte forecasts more than 80 IPOs next year, expected to raise up to HK$280 billion.
