HK Stock Market Move | Automotive stocks continue to rise, LI AUTO-W (02015) up more than 6%. The new round of subsidies for replacing old cars with new ones is expected to promote consumption.

The automobile stocks continue to rise, as of the time of writing, LI AUTO-W (02015) rose by 6.04% to 94.75 Hong Kong dollars; XPENG-W (09868) rose by 4.35% to 58.8 Hong Kong dollars; GEELY AUTO (00175) rose by 2.8% to 14.7 Hong Kong dollars; NIO-SW (09866) rose by 2.49% to 34.95 Hong Kong dollars; BYD COMPANY (01211) rose by 2.11% to 280.8 Hong Kong dollars. On the news front, the offices of the Ministry of Commerce and 8 other departments recently issued a notice on the work of replacing old cars with new ones in 2025. The notice proposes that in 2025, scrapping eligible old cars and purchasing new energy passenger vehicles will be subsidized with 20,000 yuan. The notice also states that for this year, transferring the passenger car under one's own name and purchasing a new car will be subsidized up to a maximum of 15,000 yuan. According to preliminary statistics from the Ministry of Commerce, over 6.8 million vehicles were replaced with new ones in 2024. EB SECURITIES believes that the new round of subsidies for replacing old cars with new ones is expected to steadily promote pre-holiday and post-holiday car consumption, boosting car sales in 2025. Dongguan Securities pointed out that influenced by the 2024 policies for "two new" industries and updated subsidy policies, automobile sales in December have steadily increased; the overall car market has shown a U-shaped growth trend throughout the year, successfully completing the final showdown. The 2025 policies for "two new" industries are continuing to surface, and combined with many car manufacturers updating their vehicle purchasing rights, it is expected to drive continuous recovery in the car market in 2025.