HK Stock Market Move | DONGYUE GROUP (00189) rose nearly 4% in midday trading, quota release for 26 years expected to support tight supply and demand for HFCs.

DONGYUE GROUP (00189) rose nearly 4% during the trading session, and at the time of writing, it was up 3.42% at 10.58 Hong Kong dollars with a trading volume of 56.2238 million Hong Kong dollars. On the news front, the HCFCs/HFCs enterprise quota for 2026 has been announced. Huatai stated that the HFCs quota policy shows strong continuity, mainstream products continue to face strict supply constraints, coupled with high industry concentration, a good competitive landscape, and strong support from the domestic and automotive air conditioning markets, HFCs are expected to continue to have a strong market outlook. At the same time, fluorine chemical enterprises in PVDF, fluorinated liquids, and other businesses are also expected to benefit from the increasing demand in downstream sectors such as new energy and AI. Ping An Securities released a research report stating that the quota for second-generation refrigerants in 2025 will be further reduced, while the quota for third-generation refrigerants will have limited year-on-year growth, with supply-side certainty restricted and demand-side momentum improving due to government subsidies. Downstream demand in home appliances and automotive sectors continues to grow, leading to an improvement in the supply-demand situation for refrigerants. The report recommends paying attention to enterprises leading in the production capacity of third-generation refrigerants.