HK Stock Market Move | Automotive stocks continue recent downward trend, reports show that low-interest car loans for 7 years have been tightened, many car companies' car loan promotions will end at the end of the month.

Car stocks continued to decline recently. As of the time of writing, LI AUTO-W (02015) fell by 4.51% to HK$69.85, CHERY AUTO (09973) fell by 3.07% to HK$30.9, and Guangzhou Automobile Group (02238) fell by 1.94% to HK$3.04. On the news front, at the start of 2026, the car market has seen a surge in long-term low-interest car loan promotions. Several car companies have introduced "seven-year low-interest" finance options, breaking the traditional one to five-year term for new car loans. According to 21st Century Business Herald, it has been learned exclusively that this long-term loan business is being tightened, with several car companies explicitly extending the related policies until April 30, 2026, with no definite conclusion on whether they will be extended further. Galaxy Securities pointed out that 2026 marks the start of a gradual reduction in support policies for new energy vehicles, and the pressure on the automobile market has begun to show in the first quarter, with March sales recovering marginally but still declining year-on-year. Meanwhile, most car companies are choosing to release new products during the Beijing Auto Show in April, with a clear market wait-and-see sentiment. Shenwan Hongyuan Group, on the other hand, believes that with the Beijing Auto Show approaching, they are optimistic about new car models stimulating new demand, and expect industry Beta to accelerate recovery in April.