Dairy stocks saw an uptick in trading. As of press time, CH MODERN D (01117) rose 4.14% to HK$1.51, while YOURAN DAIRY (09858) climbed 2.94% to HK$4.91.
The rally follows China's Ministry of Commerce announcing preliminary anti-subsidy measures on certain dairy products imported from the EU on December 22. Analysts at Caitong Securities noted that with domestic raw milk supply exceeding demand and milk prices at cyclical lows, imported dairy products' price advantage has diminished. This creates a window for domestic deep-processing capacity expansion, with many dairy firms accelerating investments in such facilities.
The anti-subsidy measures are expected to further strengthen domestic pricing advantages and accelerate the substitution of imported products with locally processed alternatives. Increased domestic deep-processing capacity will drive additional demand for raw milk, benefiting upstream dairy farms. Market watchers recommend focusing on YOURAN DAIRY and CH MODERN D.