Hong Kong stock concept tracking | Supply-side reform adjusting steel supply Market attention focuses on the implementation of domestic production restrictions (with concept stocks)

According to Shanghai Securities reports, in response to the impact of the US "equal tariffs" policy, many listed companies in the steel industry have responded that since China's export of steel to the US is relatively small, the imposition of "equal tariffs" measures this time will almost not affect China's steel exports to the US. Although it may seem on the surface that it will have some impact on steel exported from China to other countries and processed for export to the US, under the support of global steel demand resilience, this practice will only adjust the trade pattern and will not have a significant impact on China's annual steel exports. Citigroup has released a report on China's resource industry, stating that the announced US tariffs will have little impact on the steel-related sub-industries, and expects Chinese exports to generally face downward pressure, affecting Chinese commodities, in turn prompting the government to introduce more stimulus policies to boost domestic demand and ensure supply-side discipline, thereby balancing supply and demand dynamics. The bank expects the central government to implement more supply-side reforms to adjust steel supply in the short term and is optimistic about industry stocks such as MAANSHAN IRON. Changjiang points out that this year, with expectations of tightening supply, the futures market has low confidence in the implementation of production restrictions due to macro pressures; while the equity market, based on the safety cushion of the steel fundamentals + valuation + position three-bottom, is trying to play the left side game. Similar to 2016, a sustained uptrend may rely on an increase in market confidence in production restrictions, which requires clear production restriction targets, ways of distributing production restriction indicators, means of resettling personnel, and the involvement of more government departments. Hong Kong stocks related to the steel industry: Angang Steel (00347); MAANSHAN IRON (00323); CHONGQING IRON (01053); CHINA ORIENTAL (00581), etc.