HK Stock Market Move | Car stocks collectively rise, detailed rules for car scrappage program to be released in 2025, institutions optimistic about the continuous recovery of the car market this year.

Car stocks collectively rose, as of press time, NIO-SW (09866) rose 5.51% to HK$34.45; BYD COMPANY (01211) rose 5.38% to HK$278; LI AUTO-W (02015) rose 4.27% to HK$90.45; XPENG-W (09868) rose 3.78% to HK$56.25. On the news front, on January 17, the offices of the Ministry of Commerce and 8 other departments issued a notice regarding the work of replacing old cars with new ones by 2025. The notice stipulated that by 2025, scrapping eligible old cars and purchasing new energy passenger cars would receive a subsidy of 20,000 yuan. The notice also stated that this year, transferring one's own passenger car and purchasing a new one would receive a maximum subsidy of not more than 15,000 yuan. According to the China Automobile Dealers Association, the "double new" subsidy policy for automobiles in 2025 is expected to benefit over 15 million passenger cars. A research report by Dongguan Securities pointed out that due to the support of the "double new" policy and updated subsidy policies in 2024, automobile sales in December steadily increased; the annual car market showed U-shaped growth, successfully concluding the year-end battle. The "double new" policy for 2025 has emerged, together with multiple car companies updating purchasing rights, which is expected to further drive the continuous recovery of the car market in 2025.