Shares of toll road operators rallied in Hong Kong on Thursday, with Shenzhen Expressway Co Ltd (00548) climbing 3.19% to HK$6.625, Shenzhen International Holdings Ltd (00152) advancing 2.16% to HK$5.45, Jiangsu Expressway Co Ltd (00177) rising 1.95% to HK$10.45, and Sichuan Expressway Co Ltd (00107) gaining 0.84% to HK$4.81.

The sector-wide uptick comes after the Ministry of Transport on September 7 opened public consultation on the draft amendment to the Highway Law. The proposed revision clarifies that highway maintenance costs will be covered by toll revenue, and that expressways, independent bridges, and tunnels whose toll collection periods have expired can continue collecting tolls under unified government management. However, roads maintained by municipal authorities or funded through government budgets will no longer charge tolls.

Brokerage Guotai Junan Securities said in a research note that the Highway Law amendment is expected to accelerate the revision of supporting regulations, potentially systematically mitigating industry reinvestment risks and enhancing the long-term investment value of expressway operators. The firm maintained an "overweight" rating on the sector.

Meanwhile, Shenwan Hongyuan Securities noted that the introduction of maintenance-based tolls further strengthens the assumption of perpetual operations for expressway operators, which should support valuation recovery across the sector.