According to the Zhitong Finance APP, steel stocks rallied at the close, as of the publication, Maanshan Iron and Steel (00323) rose by 10.1%, closing at HK$1.09; Angang Steel (00347) rose by 8.26%, closing at HK$1.31; Chongqing Iron and Steel (01053) rose by 6.35%, closing at HK$0.67; China Oriental (00581) rose by 5.5%, closing at HK$1.15.

On the news front, on September 26, the Political Bureau of the CPC Central Committee held a meeting to analyze and study the current economic situation and deploy the next steps in economic work. In addition, the market cap management guidelines require long-term bottomed-out companies to disclose their valuation enhancement plans, and the execution of these plans needs to be specifically explained during performance presentations. Some research opinions believe that sectors with a high proportion of long-term bottomed-out stocks, such as banks and steel, are expected to benefit.

Galaxy Securities pointed out that since September, with the arrival of the traditional peak season for steel consumption known as "Golden September and Silver October," the industry's supply and demand pattern is expected to further improve, catalyzing a rebound in steel prices. Core assets in the manufacturing industry with operating resilience and competitive advantages are expected to see profit recovery and value reassessment. The Ministry of Industry and Information Technology has temporarily suspended steel production capacity replacements, and positive policy changes are expected to drive improvement in market expectations. Long-term constraints on the supply side are expected to become apparent, and steel profit margins may gradually stabilize and rise. Core steel assets with strong profit capabilities and stable high dividends during the bottom cycle are expected to undergo valuation recovery.