HK Stock Market Move | Household appliances stocks strengthen against the market trend. The National Development and Reform Commission increases efforts to support the exchange of old products for new ones in household appliances, which is expected to continue to drive the release of new replacement demand.

In the stock market, household appliance stocks strengthened against the trend, as of the time of drafting, Hisense Home Appliances Group (00921) rose by 3.28% to HK$26.8; HAIER SMARTHOME (06690) rose by 2.09% to HK$26.85; TCL ELECTRONICS (01070) rose by 1.13% to HK$6.28; Midea Group Co., Ltd (00300) rose by 0.26% to HK$76.85. On the news front, on January 8th, the National Development and Reform Commission and the Ministry of Finance issued a notification on implementing a large-scale equipment renewal and consumer goods replacement policy by 2025. It was pointed out that support will be increased for household appliance products replacement. Continuing to support the replacement of 8 categories of household appliances such as refrigerators, washing machines, televisions, air conditioners, computers, water heaters, household stoves, and range hoods, and adding 4 categories of household appliances including microwave ovens, water purifiers, dishwashers, and rice cookers to the subsidy range. Personal consumers purchasing products in the above 12 categories of household appliances with level 2 energy efficiency or water efficiency standards will receive a subsidy of 15% of the product's selling price; products with level 1 energy efficiency or water efficiency standards will receive a subsidy of 20% of the product's selling price. Each consumer can receive a subsidy for 1 unit of each type of product (up to 3 units for air conditioning products), with each subsidy not exceeding 2000 yuan. Personal consumers who have already enjoyed subsidies for replacing old products with new ones in 2024 can continue to receive subsidies when purchasing the same type of household appliance products in 2025. Guosen released a research report stating that the replacement policy for old products with new ones in 2024 has significantly boosted household appliance sales, with sales exceeding 200 billion yuan, and the sales of major household appliances for export remain strong in November, with impressive growth in air conditioners and central air conditioners. Since the end of December, approximately 20 provinces and cities have announced policies for the cross-year continuity of the replacement of old household appliances with new ones in 2025. The replacement policy in 2025 is expected to continue to drive the release of demand for new household appliances and boost the growth of the household appliance industry.