HK Stock Market Move | Steel stocks surged in early trading, with the China Securities Regulatory Commission issuing guidelines on market value management. The steel sector is expected to see valuation repairs.

Steel stocks surged in the morning session. As of press time, CHONGQING IRON (01053) rose 13.98% to HKD 1.06; Angang Steel (00347) rose 4.96% to HKD 1.48; MAANSHAN IRON (00323) rose 2.61% to HKD 1.18; CHINA ORIENTAL (00581) rose 0.87% to HKD 1.16. On the news front, on November 15, the China Securities Regulatory Commission issued market value management guidelines, requiring major index component stocks to establish market value management systems and disclose valuation enhancement plans for long-term companies trading below net asset value. Caixin Securities pointed out that currently, A-share long-term companies trading below net asset value are mainly concentrated in six traditional industries: banks, non-banks, real estate, steel, construction, and transportation. With the implementation of the new market value management regulations, it is expected that the above-mentioned industries will have some valuation recovery space. In addition, on November 16, Jiang Wei, Deputy Secretary of the Party Committee and Vice President of the Chinese Iron and Steel Industry Association, and Secretary-General, stated that the apparent domestic consumption of the Chinese steel industry has declined for the first time in three consecutive years, forming a downward trend. This will be the industry's first encounter with a true reduction in development, posing huge challenges. Jiang Wei emphasized that the industry must have a bottom-line mindset of "three stability and three nots" to cope with the current downturn phase.