HK Stock Market Move | Car stocks continue to fall, with XPENG-W(09868) dropping nearly 4%. The increase in the threshold for new energy vehicle tax exemption may bring a boom season in the fourth quarter.

Car stocks continue to decline. As of the time of writing, XPENG-W (09868) fell by 3.73% to HK$83.8; LI AUTO-W (02015) fell by 2.66% to HK$89.7; Guangzhou Automobile Group (02238) fell by 2.43% to HK$3.21; Great Wall Motor (02333) fell by 1.86% to HK$16.34. On the news front, the Ministry of Industry and Information Technology recently announced the technology requirements for reducing purchase tax in 2026. Minsheng Securities released a research report stating that the policy meets expectations, with pure electric vehicles currently on sale basically meeting the requirements for purchase tax subsidies; the improvement of plug-in hybrid electric vehicle range is expected to increase domestic passenger car market ASP, inefficient models will no longer be eligible for tax exemptions, pushing car manufacturers to improve the efficiency of their electric systems. Shenwan Hongyuan Group recently released a research report stating that the fourth batch of "old-for-new" funds has been issued, and car subsidies are gradually coming to an end; as well as the end of the policy of exempting new energy vehicles from purchase tax next year, to be replaced by a halved collection, with an additional tax of up to 15,000 yuan per vehicle, consumers purchasing models priced above 300,000 yuan will see a significant increase in the cost of purchasing a car, which may lead to a wave of market rush in the fourth quarter.