HK Stock Market Move | Automobile stocks fell further in the afternoon session, with some new energy companies failing to meet expectations. Next year, the purchase tax on new energy vehicles will be reinstated.

Car stocks fell sharply in the late trading session. As of the time of this report, XPENG-W (09868) fell by 4.34% to 78.3 Hong Kong dollars; Great Wall Motor (02333) fell by 4.05% to 14.47 Hong Kong dollars; Guangzhou Automobile Group (02238) fell by 2.76% to 3.17 Hong Kong dollars; LI AUTO-W (02015) fell by 1.78% to 68.8 Hong Kong dollars. In terms of news, car companies have been releasing data on their third-quarter performance, with Xiaopeng Motors suffering a significant drop after announcing its results. Industry insiders believe that the financial data of some new players did not meet expectations, leading to the drop. Considering that new energy vehicles are still experiencing price reductions in the fourth quarter and the reintroduction of a new energy vehicle purchase tax in 2026, the automotive industry landscape is expected to change. New energy vehicles are likely to continue seeing high growth in the fourth quarter, but traditional fuel vehicles may regain some market share in 2026. EB Securities' international strategist Wu Lixian predicts that the automotive industry will see differentiation, and investors should focus on companies with strong growth momentum. With the purchase tax set to be implemented at 5% next year, although this may pose challenges for automotive companies, it also serves as a selection mechanism, benefiting competitive firms. Policy impacts should be observed from different time perspectives, and in the long term, they may not necessarily be negative for leading companies.