On December 30, the National Development and Reform Commission and the Ministry of Finance issued the "Notice on Implementing the Policy of Large-Scale Equipment Updates and Consumer Goods Trade-Ins in 2026." The policy supports the trade-in of old home appliances. Individual consumers purchasing products that meet Grade 1 energy efficiency or water efficiency standards in six categories of appliances—refrigerators, washing machines, televisions, air conditioners, computers, and water heaters—will receive a subsidy equivalent to 15% of the product's sales price. Each consumer is eligible for one subsidized item per category, with a maximum subsidy of 1,500 yuan per item. Furthermore, the National Development and Reform Commission, in conjunction with the Ministry of Finance, has already allocated the first batch of the 2026 ultra-long-term special treasury bond funds, totaling 62.5 billion yuan, to local governments in advance to support the consumer goods trade-in funding plan.
According to Zhitong Caijing APP, Citi released a research report stating that the extension of the trade-in policy is a positive factor for most e-commerce platforms, which will help offset the high base effect in the first half of 2026. Although the first batch of subsidies for the 2026 trade-in plan amounts to 62.5 billion yuan, and the maximum subsidy per item is lower than the 2025 plan with fewer eligible appliance categories, Citi still believes it can boost consumer sentiment. Due to the higher base and smaller subsidy scale, the bank considers the overall utility of the new policy for e-commerce platforms may be limited, while also noting that although smart glasses products have been included as eligible subsidized items, their adoption rate is expected to be limited.
SDIC Securities released a research report indicating that the 2026 home appliance trade-in policy has been finalized. Compared to 2025, next year's subsidy policy has a narrower support scope, a lower subsidy ratio, and a greater focus on high-efficiency products. The overall content basically meets market expectations and is expected to stimulate marginal improvement in domestic home appliance sales, promoting optimization of the industry's product structure. It is anticipated that domestic home appliance consumption will maintain steady performance, and major appliance (white goods) and television (black goods) enterprises with advantages in R&D, channels, and branding will benefit more from the new policy. Regarding external sales, Sino-US trade conflicts are easing, tariff pressures are expected to decrease, and the gradual release of global production capacity by home appliance companies, along with continued contributions from emerging markets, are positive factors.
The new policy is expected to drive the home appliance industry towards upgrades in premium, smart, and green technologies, leading to optimized product structures. Major appliance enterprises with advantages in R&D, channels, and branding will benefit more from the subsidy policy. Related Hong Kong-listed home appliance industry chain stocks include: Midea Group (00300), Haier Smart Home (06690), Hisense Home Appliances (00921), TCL Electronics (01070), Skyworth Group (00751), and Xiaomi Group-W (01810).
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