Jiangxi Copper (00358.HK) saw its stock price surge 7.74% in early trading on Thursday, outperforming the broader market amid a strong rally in copper stocks. The company's shares reached HK$34.92, reflecting investor optimism in the copper sector.

The remarkable uptick in Jiangxi Copper's stock price comes on the heels of LME copper prices hitting a historic high of $11,146 per ton on Wednesday. This price surge is primarily attributed to persistent supply shortages in mines, creating a bullish sentiment for copper-related stocks. Adding to the positive outlook, Citigroup has forecasted copper prices to potentially reach $12,000 per ton in the first half of next year, with some institutions suggesting this threshold could be breached even sooner.

Market attention is currently focused on the upcoming Federal Reserve interest rate decision, with widespread expectations of a 25-basis-point cut. This anticipated move is seen as a potential catalyst for easing U.S.-China trade tensions, which could further benefit companies like Jiangxi Copper. Huafu Securities remains bullish on copper's upward trajectory, citing expectations of continued Fed rate cuts and tight supply fundamentals as short-term supports for copper prices. The firm also notes that over the medium to long term, deeper Fed rate cuts could stimulate investment and consumption, while potential fiscal stimulus under the current U.S. administration may fuel inflation, further lifting copper prices.