HK Stock Market Move | ZHONGSHENG HLDG (00881) falls more than 3% in the first quarter of 25 years due to seasonal factors affecting the demand and prices of electric vehicles.

ZHONGSHENG HLDG (00881) fell more than 3%, dropping to 3.75% at the time of publication, at 12.82 Hong Kong dollars, with a turnover of 27.6465 million Hong Kong dollars. On the news front, according to the China Automobile Dealers Association, it is expected that the terminal sales of passenger cars in December will be around 2.9 million units, with a significant increase at the end of the year. The China Automobile Dealers Association believes that with the approach of the Spring Festival in January, the number of working days will decrease, and most consumers will return home or travel for vacation, leading to a sharp decline in customer traffic to the store. In addition, affected by the pain of price recovery, the transaction rate will also decline, and the sales volume in January will decrease significantly compared to December last year. HSBC research released a report stating that with the promotion of electric vehicles in mainland China, the overall trend remains clear, but the bank's attitude has become more cautious at the beginning of this year, mainly due to lower winter demand and increasing pressure on prices and sales volume. The demand and price trends in the first quarter of this year may decline by quarter due to seasonal factors, and some sales may occur in the fourth quarter of 2024, as the scale of subsidies for the replacement of old for new in 2025 is unclear.