HK Stock Market Move | Household appliance stocks rise across the board in early trading, as the Ministry of Commerce releases a notice regarding the trade-in of old appliances for new ones. The potential for consumption is expected to continue to be unleashed.

In the early morning session, household appliance stocks rose across the board. As of the time of writing, TCL Electronics (01070) rose 6.88% to HKD 6.21; Hisense Home Appliances Group (00921) rose 3% to HKD 27.5; HAIER SMARTHOME (06690) rose 1.42% to HKD 25; Midea Group Co., Ltd (00300) rose 0.67% to HKD 75.3. On the news front, on January 15th, the offices of the Ministry of Commerce and 3 other departments issued a notice regarding the 2025 household appliance trade-in program. The notice specifies the range of appliances eligible for subsidies and the subsidy amounts. It states that individual consumers purchasing refrigerators, washing machines, TVs, and other 12 types of appliances with an energy efficiency rating of level 2 or above will receive subsidies. Consumers purchasing products with a level 2 rating will receive a 15% subsidy, while those purchasing products with a level 1 rating will receive a 20% subsidy. Each consumer can receive a subsidy for 1 product per category (up to 3 products for air conditioners), with each subsidy not exceeding 2000 yuan. Li Gang, Director of the Market Operation and Consumer Promotion Department of the Ministry of Commerce, recently stated that the trade-in program for consumer goods had driven sales exceeding 1.3 trillion yuan in 2024. Over 36 million consumers had purchased over 56 million units of 8 major categories of appliances for trade-in, and approximately 60 million pieces of home improvement and kitchen products were subsidized. Haitong International pointed out that in 2025, the retail sales of household appliances are expected to see both volume and price increase, with leading companies seeing steady growth in domestic sales revenue. With the trade-in program driving up the average selling price of appliances, the profitability of household appliance companies is expected to increase. Despite the downward trend in interest rates, the dividend yield of leading household appliance stocks remains attractive, and attention should be on companies benefiting from the trade-in policy and possessing global competitiveness in both white and black appliances.