HK Stock Market Move | Highway stocks collectively rebound; draft amendment to the Highway Law open for public comment; expressways may continue collecting maintenance fees after expiration.

Highway stocks collectively rebound. As of press time, SHENZHENEXPRESS (00548) rose 3.19% to HK$6.625; SHENZHEN INT'L (00152) rose 2.16% to HK$5.45; JIANGSU EXPRESS (00177) rose 1.95% to HK$10.45; SICHUAN EXPRESS (00107) rose 0.84% to HK$4.81. On the news front, on September 7, the Ministry of Transport solicited public comments on the "Highway Law (Draft Amendment for Public Comment)," clarifying that toll highway maintenance costs shall be allocated from toll revenue. Expressways and independent bridges and tunnels whose toll collection periods have expired may be uniformly managed by the government and continue to collect tolls, while those under municipal management or funded by fiscal guarantees shall no longer charge fees. Guotai Haitong released a research report stating that the amendment to the "Highway Law" is expected to accelerate the revision of the "Regulations," systematically improve the industry's reinvestment risk, enhance the long-term investment value of expressways, and maintain an "Overweight" rating. Shenwan Hongyuan Group stated that the introduction of maintenance-based tolling further strengthens the assumption of a perpetual operating business model for expressway operators, which is beneficial for the valuation recovery of the expressway sector.