HK Stock Market Move | Contemporary Amperex Technology (03750) fell more than 4% as new export tax rebate policies for batteries were announced, pushing up the price of lithium carbonate.

Contemporary Amperex Technology (03750) fell more than 4%, dropping 4.06% to 477.2 Hong Kong dollars, with a turnover of 675 million Hong Kong dollars as of the time of writing. In terms of news, since early December, lithium carbonate prices have been skyrocketing, breaking through the 100,000 yuan, 110,000 yuan, 120,000 yuan, 130,000 yuan, 140,000 yuan, and 150,000 yuan thresholds within just one month. This morning, the lithium carbonate futures main contract hit the daily limit up, rising 9% to 156,060 yuan per ton, rebounding by over 150% from the low point in June last year. On January 9, the Ministry of Finance and the State Taxation Administration released the "Announcement on Adjusting the Export Tax Rebate Policy for Photovoltaic and Other Products." It stated that from April 1, 2026 to December 31, 2026, the export tax rebate rate for battery products will be reduced from 9% to 6%; starting from January 1, 2027, the export tax rebate for battery products will be canceled. Huatai believes that the gradual reduction in the export tax for batteries gives the lithium battery industry a buffer period, and the bank believes that battery companies will have two rounds of exporting before April 1, 2026/December 31, 2026. In addition, the bank believes that the reduction in export tax rates is likely to increase the overseas prices of corresponding products. Overseas production capacity will not be affected by the reduction in export tax rates and is expected to benefit from the increase in overseas prices, which will increase company profits. The bank is optimistic about the top battery manufacturers that have already established overseas production capacity.