Hangzhou Iron & Steel warns of trading risks amid share surge

Hangzhou Iron & Steel Group (SSE: 600126) has issued a risk warning to investors, cautioning about its soaring stock price, which has risen sharply and detached from the company's fundamentals, as shares have surged 164% since January 22, significantly outperforming industry and market indices. The company also clarified that its involvement with DeepSeek software is limited, having minimal impact on revenue (0.06% in 2024) and no relationship with core DeepSeek technology. Additionally, the company forecasts a net loss of approximately 630 million yuan for 2024. Amidst these warnings, shareholder Beijing Chengtong Gold Control Investment Co. seeks to exchange up to 1% of Hangzhou Iron & Steel shares for shares in a CSI 500 ETF, in line with the directive to promote index investment and optimize state-owned capital structures. This exchange, involving up to 33.77 million shares, will not change control.