HK Stock Market Move | Car dealerships across the board are experiencing a downturn. YONGDA AUTO (03669) fell more than 5% during the trading session, while ZHONGSHENG HLDG (00881) is currently down more than 3%.

Car dealers are all falling, as of now, YONGDA AUTO (03669) fell by 4.56% to 2.3 Hong Kong dollars; ZHONGSHENG HLDG(00881) fell by 3.38% to 11.44 Hong Kong dollars; MEIDONG AUTO(01268) fell by 1.92% to 2.04 Hong Kong dollars. On the news front, recently, the Ministry of Industry and Information Technology and the China Association of Automobile Manufacturers have voiced opposition to car price wars. The Ministry of Industry and Information Technology stated that it will increase efforts to rectify the "internal competition" in the automotive industry. The China Association of Automobile Manufacturers also clearly stated its support for companies participating in market competition through normal means, while strongly opposing "price wars" without bottom line. Goldman Sachs released a research report showing that as of May 26, the average discount rate of new energy car dealers from the manufacturer's suggested retail price was 9.09%, compared to 7.65% as of May 19. In addition, on May 22, Xiao Zhengsan, President of the China Automobile Dealers Association, stated in his opening speech at the 2025 China Automobile Dealers Conference that the current rapid switch in product structure in the automobile market has led to problems such as excessive and overly dense networks, insufficient profitability, and strained relationships with manufacturers for dealers with a layout of fuel vehicles. Industry elimination and reshuffling are imperative. At the request of industry companies, the Association, under the guidance of government departments and based on extensive research, will initiate the promotion of dealer authorization contracts with exit clauses.