HK Stock Market Move | Lithium battery sector leads gains, Morgan Stanley issues research report endorsing Contemporary Amperex Technology, institutions say market is focusing on lithium battery demand expectations for next year.

The lithium battery sector led the gains, as of the time of writing, CALB (03931) rose by 8.59% to 29.06 Hong Kong dollars; Contemporary Amperex Technology (03750) rose by 4.9% to 454 Hong Kong dollars; Ganfeng Lithium Group (01772) rose by 3.79% to 35.06 Hong Kong dollars; Tianqi Lithium Corporation (09696) rose by 3.57% to 41.22 Hong Kong dollars. On the news front, on September 11, Morgan Stanley released a report pointing out that with Contemporary Amperex Technology making breakthroughs in the European market, and smaller competitors in critical energy storage areas facing profitability challenges, coupled with the currently popular solid-state battery technology being viewed as short-term speculation, Contemporary Amperex Technology's leading advantage will continue, and its valuation is significantly attractive among peers, making it the "cheapest in the industry. China Securities Co., Ltd. believes that the lithium battery sector has already realized market demand for 2025 beyond expectations. The current core contradiction of the sector has shifted to whether the expected demand for 2026 can further increase on the basis of a 20% growth rate. Three major signals to follow-up: first, the fourth-quarter energy storage bidding situation, which will map out the 2026 installed capacity data; second, the battery company bidding at the end of November corresponding to the expected demand for 2026, although some battery companies have already given guidance for 2026 that significantly exceeds market expectations, the credibility is still questionable, and subsequent discussions based on price have credibility; third, the continuation of policies such as replacing old cars with new ones in 2026 and lithium battery production information. Although there are large expectations differences at present, the super expectations of energy storage driven by economics may accelerate next year, and a second wave of market conditions may occur at any time with increased attention.