Changes in Hong Kong stocks | Collective recovery of highway stocks, consultation on draft amendments to the Highway Law, rapid expiration, renewable maintenance fees

The Zhitong Finance App learned that highway stocks are recovering collectively. As of press release, Shenzhen Expressway shares (00548) rose 3.19% to HK$6.625; Shenzhen International (00152) rose 2.16% to HK$5.45; Jiangsu Ninghu Expressway (00177) rose 1.95% to HK$10.45; and the Sichuan-Cheng-Chongqing Expressway (00107) rose 0.84% to HK$4.81.

According to the news, on September 7, the Ministry of Transport solicited public comments on the “Highway Law (Draft Amendment for Comments)”, clarifying that toll road maintenance costs are included in tolls. Highways and independent bridges and tunnels that have expired can be managed uniformly by the government and continue to collect tolls, while municipal maintenance or financial security will no longer be charged.

Cathay Pacific Haitong Securities released a research report saying that the amendments to the “Highway Law” are expected to accelerate the revision of the Regulations, which is expected to systematically improve the risk of reinvestment in the industry, increase the long-term investment value of highways, and maintain the “gain” rating. Shen Wan Hongyuan, on the other hand, said that the introduction of maintenance fees has further strengthened the business model assumptions for highway operators to operate sustainably, which is beneficial to the highway sector's valuation repair.