HK Stock Market Move | Automobile industry chain leads the way in growth, association calls for relief for car dealers. Institutions predict that sales performance in September and October will exceed expectations.

The automotive industry chain led the gains, as of the time of writing, ZHONGSHENG HLDG (00881) rose by 6.42% to 9.62 Hong Kong dollars; MEIDONG AUTO (01268) rose by 6.08% to 1.92 Hong Kong dollars; NIO-SW (09866) rose by 6.51% to 42.55 Hong Kong dollars; LI AUTO-W (02015) rose by 4.67% to 88.6 Hong Kong dollars; XPENG-W (09868) rose by 2.28% to 38.05 Hong Kong dollars. In terms of news, according to data from the China Automobile Dealers Association, in August, the overall discount rate of the new car market was 17.4%. From January to August this year, the "price war" has led to a cumulative retail loss of 138 billion yuan in the overall new car market, which has had a significant impact on the healthy development of the industry. The association called on relevant government departments to pay close attention to the financial difficulties and closure risks faced by the current automotive distribution sector, take decisive measures to provide financial relief policies in stages, and effectively prevent the systemic risks in the automotive distribution sector. Sinolink pointed out that in September, provinces have successively released replacement policies in response to the national scrappage renewal policy, encouraging consumers to trade in old cars for new ones, effectively boosting new car sales. With the addition of policy subsidies, the traditional strong sales performance of the "Golden September" in the car market is impressive, and the momentum of new energy products is higher than historical expectations. In addition, on September 19, the Federal Reserve cut interest rates by 50 basis points, officially starting a global rate-cut cycle, which is also a positive factor for consumer spending in the car market. It is expected that the sales performance in the strong season of September and October this year will exceed expectations.