HK Stock Market Move | Mobile phone industry chain rose in the early session, Sunny Optical (02382) up more than 4%. Starting today, various regions will gradually implement new subsidies for purchasing digital products.

In the early trading session, the mobile phone industry chain saw a general rise. As of press time, Sunny Optical (02382) rose by 4.69% to HK$65.8, BYD Electronic (00285) rose by 2.62% to HK$39.1, Cowell (01415) rose by 2.63% to HK$27.35, and Q Tech (01478) rose by 2.06% to HK$6.45. On the news front, starting from January 20th, new consumer electronics subsidy programs will be implemented across the country. Each person can receive a subsidy for one mobile phone, tablet, smart watch (or wristband), with a subsidy rate of 15% off the final selling price after deducting all production, distribution, and mobile operator discounts, with a maximum subsidy of 500 yuan per item. Sinolink believes that the 15% subsidy (not exceeding 500 yuan) on top of the existing discounts for the products is a significant stimulus, and the subsidy program will stimulate the market recovery of consumer electronics products by 2025. Morgan Stanley stated that the subsidy reaffirmation will serve as a short-term positive catalyst for intelligent smartphone OEMs and the supply chain, with Xiaomi, Sunny Optical, AAC Tech, BYD Electronic, and Q Tech expected to be the main beneficiaries.