HK Stock Market Move | Dairy stocks were active in the morning session with CH MODERN D(01117) rising over 3%, as the European Union took anti-subsidy measures against imported dairy products.

The dairy sector was active in the morning session. As of the time of publication, CH MODERN D (01117) rose by 3.42% to 1.51 Hong Kong dollars; YST DAIRY (01431) rose by 2.88% to 0.25 Hong Kong dollars; MENGNIU DAIRY (02319) rose by 1.5% to 15.56 Hong Kong dollars; and CHINA FEIHE (06186) rose by 1.42% to 4.28 Hong Kong dollars. In terms of news, the Ministry of Commerce announced that temporary countervailing measures will be imposed on imported dairy products from the European Union, starting from December 23, 2025. Changjiang stated that with the growth in domestic demand for related products and the low domestic cost of raw milk, the domestic substitution of deep-processed products is expected to accelerate. Postal Securities believes that the policy dividends are being intensively released, with the National Medical Insurance Bureau proposing to strive for "no self-payment" for individual childbirth by 2026, coupled with subsidies for childbearing in various regions, which will boost long-term demand for maternal and infant dairy products; the Ministry of Commerce and two other departments have issued documents to strengthen coordination between commerce and finance to boost consumption. After the clearance of previous production capacity, the liquidation of dairy cows has accelerated, and the price of raw milk has bottomed out and stabilized. We expect 2026 to mark a turning point in supply and demand, with increased certainty in the upward trend of milk prices.