HK Stock Market Move | Car stocks collectively trended lower, with January car sales decreasing compared to the previous month. Institutions are optimistic about the post-holiday recovery in business conditions.

The automotive stocks collectively fell, as of the release, LI AUTO-W (02015) dropped by 4.11%, to 68.9 Hong Kong dollars; XPENG-W (09868) dropped by 3.59%, to 68.55 Hong Kong dollars; Great Wall Motor (02333) dropped by 2.68%, to 13.05 Hong Kong dollars; Guangzhou Automobile Group (02238) dropped by 2.11%, to 3.72 Hong Kong dollars. On the news front, according to the China Association of Automobile Manufacturers, China's automobile sales in January decreased by 3.2% year-on-year, while sales of new energy vehicles increased by 0.1% year-on-year. According to the Passenger Car Association, wholesale sales of new energy passenger cars in January decreased by 3.3% year-on-year, and retail sales decreased by 20.0% year-on-year. Guotai Junan Securities (Hong Kong) stated that automobile sales in January fell month-on-month mainly because demand was released early last year, and with various car companies releasing new cars after the Spring Festival, and a new round of car purchase subsidy funds being distributed, it is expected that the automotive market will see an upswing in momentum. In addition, on February 26, Tesla China announced a new round of car purchase financial incentives. For orders placed before March 31, all models can enjoy 7 years of ultra-low interest loans. Among them, the Model 3, Model Y, and Model Y L, three main models, can choose an additional 5-year interest-free plan, allowing for purchasing a car on loan without paying any interest. This move is widely seen in the industry as another round of "price reduction in disguise," aimed at further boosting terminal sales.