HK Stock Market Move | Car stocks fell sharply in the afternoon, with the purchase tax for new energy vehicles set to decline next year. Reports indicate that most car companies are adopting a cautious attitude.

In the afternoon, the decline of the car stocks widened. As of press time, XPENG-W(09868) fell by 4.84% to HK$81.65; Great Wall Motor(02333) fell by 3.69% to HK$15.15; LI AUTO-W(02015) fell by 2.23% to HK$87.65; Guangzhou Automobile Group(02238) fell by 1.16% to HK$3.42. On the news front, starting from 2026, the standard for tax reductions on domestic new energy vehicles will be increased. According to Securities Times, most car companies are cautious about the market impact of the new regulations. Li Bin, the founder of NIO, stated in an interview that in the first quarter of next year, all car companies will face great pressure, and policies such as tax rebates may lead to early release of demand. He predicts that car sales in the first quarter of next year may be about half of the fourth quarter of this year. UBS recently released a research report stating that although most car manufacturers should be able to meet the new standards, the latest policy updates may appear more stringent, adversely affecting market sentiment. Shenwan Hongyuan Group stated that car subsidies are gradually coming to an end, and the policy of exempting new energy vehicles from purchase tax will end next year, leading to a significant increase in the cost of buying a car. This may bring about a wave of market rush in the fourth quarter.