HK Stock Market Move | YADEA (01585) rose nearly 4% with new industry policies and subsidies in place in the short term. The company is expected to reach a turning point in its operations.

YADEA (01585) surged nearly 4%, up 3.72% at the time of publication, to 13.38 Hong Kong dollars, with a turnover of 1.54 billion Hong Kong dollars. On the news front, GF SEC pointed out that the two-wheeler industry will benefit in the short term from new policies and subsidies, with long-term demand still having room for improvement. In the short term, the revision of the "New National Standard" in 2019 has accelerated the replacement of existing vehicles, driving industry growth and concentration. In 2024, the new revision of the "New National Standard" will bring stricter industry regulations, coupled with subsidies for old-for-new replacements, accelerating a new round of replacement of existing vehicles and industry concentration. Looking ahead in the long term, there is room for improvement in both consumer (C) and business (B) demand in the domestic market. The overseas market is still a blue ocean, with the market expected to develop rapidly due to factors such as subsidies and bans on motorcycles. Guolian previously stated that with the implementation of the new national standard draft, the core rules of the industry are clear, and the company's pace of new product development is gradually recovering; combined with the gradual boost in industry demand from the old-for-new policy, a turning point in the company's operations is expected.