Bank of America: "Year of the Red Horse" first choice is aluminum industry stocks, has a "buy" view on gold, copper, lithium, and cobalt industry stocks.

Bank of America Securities released a research report stating that 2026 will be the "Red Horse Year." For China's basic metals market, it is beneficial for electrification and AI power infrastructure, mainly due to the following key factors: Weak US dollar and US interest rate cuts favor metals; Copper and aluminum supplies are continuously tight; Demand driving factors this year include grid investment, electrification, energy storage systems, and AI power demand; Real estate and consumer sectors are weak; Anti-inner-circle policies are becoming more balanced, but execution has been weak recently. The bank's top choice is aluminum stocks, and it holds a "buy" rating on gold, copper, lithium, and cobalt stocks; It is neutral on coal; It is bearish on solar energy and building materials, mainly due to weak demand, weak short-term execution of anti-inner-circle policies, and declining steel profit margins. The bank's top stock picks include Aluminum Corporation of China, Zijin Mining, China Hongqiao, Shandong Gold, and Ganfeng Lithium.