On June 1, Dongyue Group rose 6.06% in regular trading, trading at HK$17.80/share, with trading volume of HK$65.03 million. The stock has accumulated nearly 60% gains year-to-date.

The rally was driven by continued market reaction to favorable policy developments from both the US and UK regarding HFCs refrigerants. The US EPA formally signed and published a final rule significantly relaxing GWP limits across multiple core sub-sectors, effectively extending the legal service life of third-generation refrigerants in the US. Meanwhile, the UK Department for Environment, Food and Rural Affairs announced a postponement of its proposed fluorinated gas phase-down steps.

Analysts note that the essence of these policy shifts is that Europe and the US face supply shortages of high-GWP HFCs refrigerants, necessitating regulatory relaxation to safeguard domestic demand. With global HFCs capacity concentrated primarily in China, domestic quotas capped at only 797,800 tonnes with near-zero supply growth, and domestic refrigerant prices continuing to rise, a global refrigerant restocking cycle may be underway. Dongyue Group, as a leading fluorochemical producer with total R32 capacity reaching 120,000 tonnes upon project completion, holds significant quota advantages.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)