Shares of Zhaojin Mining (01818) surged close to 9% during the trading session. At the time of writing, the stock was up 6.21% to HK$20.18, with a turnover of HK$351 million.

The upward movement follows a report from the European Central Bank in early June, which indicated that gold's share of total global official reserve assets had risen to 27% by the end of 2025, surpassing U.S. Treasury securities by 5 percentage points to become the largest single asset class in global official reserves.

Recently, Citi issued a report raising its target price for Zhaojin Mining to HK$41.4 while maintaining a "Buy" rating. This adjustment is primarily based on expectations for a recovery in gold prices during 2026-27.

A previous research report from Founder Securities noted that the Offshore Gold Mine is one of China's largest single gold deposits. Zhaojin Mining holds a 70% stake in the project. In 2025, the mine achieved efficient underground TBM tunneling, and its ore processing system successfully completed a wet commissioning run, marking initial industrial production capability.

Once the project is fully operational and reaches designed capacity, it is expected to produce approximately 15 to 20 tonnes of gold annually. This output is anticipated to provide the company with a significant incremental contribution to its gold production.