HK Stock Market Move | New energy vehicle stocks are rising, with the end-of-year peak season combined with the policy of replacing old vehicles with new ones, increasing industry momentum and continuing high prosperity.

New energy vehicle stocks rose, as of the time of writing, NIO-SW (09866) rose by 5.48%, to 36.55 Hong Kong dollars; LEAPMOTOR (09863) rose by 4.19%, to 32.3 Hong Kong dollars; LI AUTO-W (02015) rose by 2.91%, to 93.7 Hong Kong dollars; XPENG-W (09868) rose by 1.65%, to 49.5 Hong Kong dollars. On the news front, with the traditional peak season at the end of the year and the incremental policy of replacing old cars with new ones, the passenger car market at the retail end continues to be in a high-growth trend. According to data from the Ministry of Commerce, as of December 13, the number of applications for subsidies for scrappage and replacement of automobiles reached 2.51 million and 2.72 million vehicles, totaling over 5.2 million vehicles. According to data from the China Passenger Car Association, the new energy passenger car market retail sales in November were 1.268 million, a year-on-year increase of 50.5% and a month-on-month increase of 5.9%. The retail penetration rate of new energy vehicles in November was 52.3%. From January to November 2024, 9.594 million vehicles were sold, a year-on-year increase of 41.2%. It is worth mentioning that the Ministry of Finance recently issued a notice on "Strengthening the Implementation of Regulations and Further Promoting the Improvement and Efficiency of Administrative Institutions' State-Owned Assets Management." It proposed strict implementation of official vehicle staffing management, reasonable allocation of official vehicles within the staffing, and encouragement of the use of new energy vehicles. The proportion of new energy vehicle allocation will gradually increase according to regulations. Orient Securities pointed out that with the combination of favorable policies and the new car cycle, the pricing power of industry leaders continues to be evident, and the upgrade of intelligent driving is reshaping the competitive landscape. They are paying attention to beneficiaries of the increment in new vehicle models such as BYD Company Limited and Xiaopeng Motors.