HK Stock Market Move | Most automotive stocks are rising, the Ministry of Commerce will advance the pilot reform of automobile circulation and consumption, focusing on changes in industry structure and industry trends.

Most car stocks are on the rise. As of the time of writing, CHERY AUTO (09973) is up by 3.61% to 31.58 Hong Kong dollars; Guangzhou Automobile Group (02238) is up by 3.52% to 3.53 Hong Kong dollars; LEAPMOTOR (09863) is up by 3.27% to 52.05 Hong Kong dollars; BAIC MOTOR (01958) is up by 3.02% to 2.05 Hong Kong dollars; and XPENG-W (09868) is up by 1.46% to 83.3 Hong Kong dollars. In terms of news, on November 27th, the State Council Information Office held a routine press conference to introduce the relevant measures for enhancing the adaptability of consumer goods supply and demand and further promoting consumption policies. Yang Nian, head of the Market Operation and Consumption Promotion Department of the Ministry of Commerce, stated that commodity consumption is an important area for promoting consumption and improving people's livelihood. In the next step, the Ministry of Commerce will promote the reform of automobile circulation consumption pilot, expand the circulation of used cars, and expand the automotive aftermarket including car modification, leasing, racing events, and RV camping, to expand the entire chain of automobile consumption. EB SECURITIES released a research report stating that the peak season at the end of 2025 and the reduction of purchase tax may drive orders to a new high at the end of the year, focusing on the model cycle. The bank expects that the domestic retail sales of passenger cars in 2026 will slightly decrease year-on-year, and the export of new energy passenger cars is still expected to maintain rapid growth, driving a relatively stable year-on-year performance in wholesale sales of passenger cars. China Securities Co., Ltd. pointed out that the automobile industry has three investment directions: cyclical, growth, and overseas. With the weakening of policy expectations in 2026, the cyclical attribute of the industry is weakening. It is recommended to dilute the total demand expectation and focus on changes in industry structure and industrial trends.