HK Stock Market Move | NIO-SW (09866) surged more than 5% again, NIO and Xpeng launched a limited-time subsidy policy to ensure a minimum level of support, and it is expected that the Firefly will begin deliveries in the first half of the year.

NIO-SW (09866) rose by over 5%, reaching an increase of 5.41% at the time of publication, closing at 37.05 Hong Kong dollars, with a trading volume of 65.069 million Hong Kong dollars. In terms of news, on January 2nd, NIO and LeDao brand jointly announced that starting from 2025 to February 28th, they will offer a limited-time subsidy policy for users who purchase new cars with a trade-in. During this period, if users are unable to apply for government replacement subsidies due to the new car invoice being issued earlier than the "trade-in" policy requirements, NIO and LeDao will fully subsidize the difference through points and equivalent electric subsidies. NIO and LeDao also introduced a "zero down payment, zero interest for 3 years limited-time financial incentive" policy. BOCOM INTL pointed out that NIO is one of the few car companies in China that offer battery swapping services. The new Baas scheme reduces the threshold for purchasing cars for users and is expected to drive sales. The NIO brand has a market share of over 30% in the high-end pure electric market above 300,000 yuan. In addition to the high-end pure electric market, the company launched its second brand, LeDao L60, targeting models below 300,000 yuan. The third brand, Firefly, was launched in December with a lower price positioning. The bank pointed out that stock price catalysts include: Firefly expected to start deliveries in the first half of 2025; LeDao driving sales growth.