HK Stock Market Move | Cement stocks surged in the afternoon and some cement companies in certain regions have notified of price increases. The policy of restricting production capacity is officially entering the implementation phase in the near future.

In the afternoon, the cement sector saw an expansion in gains. As of the time of writing, Anhui Conch Cement (00914) rose by 5.07% to 20.95 Hong Kong dollars; Huaxin Cement (06655) rose by 4.39% to 7.83 Hong Kong dollars; CR BLDG MAT TEC (01313) rose by 3.87% to 1.61 Hong Kong dollars; WESTCHINACEMENT (02233) rose by 3.05% to 1.69 Hong Kong dollars. On the news front, after the Lantern Festival, with the rise in temperature and the gradual resumption of construction sites, some cement companies in certain regions have announced price hikes. CMSC pointed out that overall market demand is weak, and prices are still falling this week. However, in order to prevent continuous price declines and to boost market confidence, more regions are increasing prices, indicating that companies are more determined to stabilize prices. It is expected that prices will fluctuate and stabilize in the near future. Guotai Junan also pointed out that supply-side capacity restrictions for the cement sector policy have recently entered into implementation phase, with a consensus on staggered price hikes. Amid expectations of narrowed demand fluctuations, the sector's ton profit level in Q4 is expected to see a substantial improvement compared to the same period in 2025, with enhanced expectations for supply-side optimization. The new market value management policies have stricter requirements for weighted and underperforming sectors, with the cement sector having the highest relevance.