Cement stocks experienced broad-based gains, with HUAXIN CEMENT (06655) climbing 5.1% to HK$15.26, WESTCHINACEMENT (02233) advancing 5.1% to HK$3.3, CNBM (03323) rising 3.23% to HK$5.44, and CONCH CEMENT (00914) gaining 1.56% to HK$23.48 as of press time.

The rally was driven by policy developments, as six government departments including the Ministry of Industry and Information Technology released the "Building Materials Industry Stable Growth Work Plan (2025-2026)" on September 24th. Listed company representatives indicated they are actively implementing capacity replacement arrangements.

Industry analysts project that the plan's requirement to "establish capacity replacement schemes for production capacity exceeding project registrations by the end of 2025" could eliminate approximately 10% of clinker capacity, potentially accelerating industry price recovery. Additionally, large enterprises are expected to accelerate domestic market consolidation, effectively enhancing industry concentration.

Securities analysts note that cement industry demand remains in a bottoming process, with companies strengthening off-peak production suspensions and cement prices fluctuating around the industry's break-even point. The China Cement Association has issued guidance on promoting "anti-involution" and "stable growth" for high-quality development in the cement sector, suggesting potential supply-side improvements.

Meanwhile, major infrastructure projects are expected to boost regional demand in Tibet, Xinjiang and other areas. Market attention is focused on leading players with cost advantages and pricing power like CONCH CEMENT, as well as overseas expansion targets such as HUAXIN CEMENT.