Hong Kong stock market concept tracking | Replacement subsidies for household appliances increased to 12 categories, obvious pull of household appliance demand (with concept stocks)

Zhao Chenxin, Deputy Director of the National Development and Reform Commission, stated at the State Council's regular policy briefing on January 8 that the number of home appliances eligible for the old-for-new subsidy has been increased from 8 categories last year to 12 categories. Each item can now receive a subsidy of up to 20% of the sale price. In addition to the original 8 categories including refrigerators, washing machines, televisions, air conditioners, computers, water heaters, household stoves, and range hoods, microwaves, water purifiers, dishwashers, and rice cookers have been added to the subsidy range. Previously, there were concerns in the market about a possible gap in policy stimulation between the end of the "Guobu" subsidy in 2024 and the convening of the Two Sessions in March 2025, leading to worries about insufficient consumer confidence. As of now, more than ten provinces nationwide have announced seamless transition in stimulus policies starting from January 1, 2025, continuing until the end of the year. The strength and sincerity of the policies have exceeded expectations, prompting investors to seize the opportunity presented by the current round of stimulus exceeding expectations. According to research reports released by CICC and CICC, the estimated financial scale of each round of consumer subsidy policy in Mainland China throughout history has been calculated, along with a framework for calculating the fiscal multiplier. The calculations show that the fiscal subsidy multiplier is high, driving strong consumption. It is estimated that in the fourth quarter of last year, the old-for-new subsidy exceeded 110 billion yuan, with a fiscal multiplier of around 2.8. This year's expansion of the "old-for-new" policy may surpass 2010 as the year with the highest intensity of consumer subsidy, providing a significant boost to total retail sales. Related Hong Kong-listed stocks for old-for-new home appliances include: Hisense Home Appliances Group (00921), HAIER SMARTHOME (06690), TCL ELECTRONICS (01070), Midea Group Co., Ltd (00300), and XIAOMI-W01810.