BlackRock's long position in H shares of Aluminum Corporation of China increases to 5.26% on July 4 from 4.66% - HKEX

BlackRock's long position in H shares of Aluminum Corporation of China increases to 5.26% on July 4 from 4.66% - HKEX

BlackRock's investment in H shares of Aluminum Corporation of China (CHAL) has increased to 5.26% as of July 4, 2025, up from 4.66% on the Hong Kong Stock Exchange (HKEX). This significant increase in stake comes amidst a backdrop of heightened geopolitical risks and market volatility, as outlined in the latest report from the BlackRock Investment Institute [1].

The BlackRock Geopolitical Risk Indicator (BGRI), a measure of market attention to geopolitical risks, has shown elevated levels of uncertainty and volatility. The indicator, a simple average of the top-10 risks, underscores the structural changes in global geopolitics. Among the top risks, U.S.-China strategic competition, global technology decoupling, and major cyber attacks stand out as significant concerns [1].

The U.S.-China strategic competition has escalated, with tensions over Taiwan and the South China Sea reaching new heights. In response, the U.S. has taken measures to counter China's influence, including export controls and advanced technology restrictions. These actions have accelerated technology decoupling between the U.S. and China, with the U.S. pursuing an approach that favors broad proliferation of its technology globally while excluding China [1].

Moreover, the risk of major cyber attacks has increased due to the proliferation of advanced AI technology. State-backed hacking operations have surged, with critical industries experiencing a 300% spike in targeted attacks. This rising threat underscores the need for robust cybersecurity measures and the potential impact on global supply chains [1].

In this uncertain geopolitical environment, BlackRock's increased stake in CHAL may reflect a strategic move to capitalize on potential opportunities in the aluminum sector. The aluminum industry is a key component of global supply chains and is sensitive to geopolitical risks. By increasing its stake, BlackRock could be positioning itself to benefit from any potential shifts in trade policies or market dynamics.

However, investors should remain cautious and closely monitor the geopolitical landscape. The ongoing trade tensions, regional conflicts, and cybersecurity threats could introduce further volatility into the market. As such, a diversified investment strategy that accounts for these risks may be advisable.

References:
[1] BlackRock Investment Institute. (July 2025). Geopolitical Risk Dashboard. Retrieved from [https://www.blackrock.com/corporate/insights/blackrock-investment-institute/interactive-charts/geopolitical-risk-dashboard](https://www.blackrock.com/corporate/insights/blackrock-investment-institute/interactive-charts/geopolitical-risk-dashboard)