HK Stock Market Move | Auto stocks fell across the board as intelligent driving equality and financial battles among car companies loom. Competition in the automobile market may significantly intensify.

Car stocks fell across the board, as of the time of publication, Great Wall Motor (02333) fell 4.4%, to 11.74 Hong Kong dollars; BRILLIANCE CHI (01114) fell 3.58%, to 3.77 Hong Kong dollars; LI AUTO-W (02015) fell 3.27%, to 97.6 Hong Kong dollars; XPENG-W (09868) fell 2.97%, to 60.5 Hong Kong dollars. On the news front, BYD Company Limited recently announced its smart strategy, bringing smart driving down to below 100,000 RMB. HAITONG INT'L pointed out that BYD Company Limited's 2025 "smart driving equality" strategy has been brewing for a while. Smart driving equality will spark intense competition in the comprehensive cost-performance of mainstream products in the Chinese car market in 2025, and further reduce the technology barrier for smart driving. In addition, on February 12, Hongmeng Zhihang announced that the Smart Traveler S7 will launch a limited-time financial policy with 3 years interest-free and 5 years low interest. CITIC SEC stated that the car company's financial policies may further intensify the price war in the new energy vehicle market. Guotai Junan also pointed out that Tesla, XPeng Motors, Zhi Ji, and other car brands have released a variety of heavy-duty car purchase discount policies, including insurance subsidies, zero-interest financing schemes, and other diverse strategies. The "price war" in 2025 is increasingly focused on optimizing the threshold for consumer car purchases.