HK Stock Market Move | Mobile phone industry chain continued to rise, "National subsidy" first day mobile phone sales increased significantly month-on-month, institutions are optimistic about the recovery of the consumer electronics market.

The mobile phone industry chain continues to rise, as of press time, Sunny Optical (02382) rose by 4.35% to 68.3 Hong Kong dollars; AAC TECH (02018) rose by 3% to 39.45 Hong Kong dollars; BYD ELECTRONIC (00285) rose by 1.79% to 39.9 Hong Kong dollars; Q TECH (01478) rose by 1.07% to 6.62 Hong Kong dollars. On the news front, various regions have officially implemented new subsidy policies for the purchase of digital products such as mobile phones, tablets, smart watches, and smart wristbands. It is reported that e-commerce platforms such as Tmall and JD.com have launched national subsidies. JD.com data shows that as of 12:00 on January 20, national subsidies have increased sales volume of mobile phones by 200%, tablets by 300%, and smart children's watches by 100% month-on-month. Sinolink believes that an additional 15% subsidy on the discounted price of the goods (not exceeding 500 yuan) is a significant subsidy, stimulating the market recovery of consumer electronics products by 2025. Morgan Stanley stated that the reiteration of subsidies will be a short-term positive catalyst for OEMs and supply chains of smart phones, and expects Xiaomi, SUNNY OPTICAL, AAC TECH, BYD ELECTRONIC, and Q TECH to be the major beneficiaries.