HK Stock Market Move | Home appliance stocks continue to rise, with China's exports of household appliances achieving positive growth for 18 consecutive months. The industry's domestic sales expectations may be set for a turnaround.

Home appliance stocks continue to rise. As of the time of writing, TCL Electronics (01070) rose by 5.41% to 5.26 Hong Kong dollars; Hisense Home Appliances Group (00921) rose by 0.88% to 22.8 Hong Kong dollars; HAIER SMARTHOME (06690) rose by 3.37% to 26.1 Hong Kong dollars. On the news front, the latest data released by the General Administration of Customs on September 18 showed that in the first 8 months of this year, exports of key products in China continued to grow at double digits, up 14.7% year-on-year (in US dollars). As of August this year, China's household appliances exports have seen year-on-year positive growth for 18 consecutive months. Shenwan Hongyuan Group believes that against the background of the Fed's interest rate cut, interest rate-sensitive sectors such as real estate and manufacturing may benefit, which could radiate to China's furniture, home appliances, decoration, processing of metal products, and industrial machinery exports. Tianfeng released a research report stating that in the first half of 2024, the revenue of home appliances will continue to grow steadily, and profitability will continue to improve, highlighting the resilience of leading companies' performance. With the recent implementation of the policy of replacing old appliances with new ones, subsidy efforts are comparable to the previous policy of promoting home appliances in rural areas. The domestic sales are in a new cycle of renewal, and policy implementation elasticity can be expected. Domestic sales expectations may see a reversal, combined with export prosperity, undervalued high-dividend stocks, maintaining an industry rating of "stronger than the overall market."