HK Stock Market Move | Car stocks across the board rise. Institutions claim that the trend of exchanging old cars for new ones is likely to continue next year. Price competition in the industry is slowing down.

Car stocks are all rising, with XPENG-W (09868) up 6.18% to HK$80.75; LEAPMOTOR (09863) up 5.33% to HK$52.6; BYD COMPANY (01211) up 4.75% to HK$98.05; GEELY AUTO (00175) up 4.79% to HK$17.71. Founder released a research report stating that the Central Economic Work Conference and the Ministry of Finance have clarified the optimization of policies for "two new" (new energy vehicles and intelligent connected cars), and many places are selecting platform companies for vehicle replacement program. According to media reports, national subsidies will continue until 2026, with a maximum subsidy of 30,000 yuan per vehicle. The focus is on phasing out old high-emission vehicles and increasing the threshold for new energy subsidies and hybrid vehicle pure electric range. The bank pointed out that the industry did not experience a significant tail effect after many places phased out replacement subsidies, coupled with the reduction of new energy vehicle purchase tax exemptions starting in 2026, the pressure on the automotive market in Q1 2026 will increase. However, positive signals from the policy side continue to be released. After the State Administration for Market Regulation issued guidelines for price compliance in the automotive industry, companies like BYD Company Limited and XPENG have actively responded, slowing down price competition in the industry and improving the competitive environment. At the same time, some cities have begun to implement work related to the new national subsidies, and the industry is expected to benefit from the supplementary catalysis of policy details and supporting measures. The configuration value of leading car companies at the bottom is highlighted, and attention should be paid to the follow-up policy catalysis for industry prosperity.