HK Stock Market Move | Automobile stocks lead the decline as the car market enters a negative growth zone in October. Institutions say they will wait and see for demand in the first quarter of the 26th year.

Car stocks led the decline, as of press time, XPENG-W (09868) fell by 10.47%, to HK$85.95; Great Wall Motor (02333) fell by 4.35%, to HK$14.95; BYD Co., Ltd. -W (02015) fell by 3.51%, to HK$72.75; Guangzhou Automobile Group (02238) fell by 2.67%, to HK$3.28. On the news front, the popularity of car consumption has decreased. The China Passenger Car Association recently released the latest sales data for October. In October, the national retail sales of passenger cars reached 2.242 million, a year-on-year decrease of 0.8% and a month-on-month decrease of 0.1%. According to the China Passenger Car Association, from November 1-9, retail sales of passenger cars decreased by 19% year-on-year, while wholesale sales decreased by 22% year-on-year. Sinolink released a research report stating that the car market entered negative growth in October. Due to the continual decline in local subsidies and the high base level from 25 years ago, car sales have weakened. The continued increase in penetration rate confirms the impact of the reduction in purchase tax exemptions. It is expected that the market sales volume in Q4 will remain flat year-on-year, with the penetration rate continuing to reach new highs; however, it is necessary to wait and see the demand in the first quarter of 2026.