HK Stock Market Move | Car stocks collectively fell, with Guangzhou Automobile Group (02238) dropping more than 3%. Domestic sales of car companies in general are still under pressure.

The automobile stocks collectively fell. As of the time of this report, Guangzhou Automobile Group (02238) fell by 3.47% to HK$2.78, Great Wall Motor (02333) fell by 2.75% to HK$11.69, and LI AUTO-W (02015) fell by 1.07% to HK$69.4. In terms of news, Sinolink believes that several car companies have released their April sales reports. 1) Domestic sales still face pressure compared to the same period last year, with varying results on a monthly basis. The bank believes this is mainly due to the reduction in subsidies for replacing old vehicles, halving of subsidies for purchasing new energy vehicles, and a mild overall market pricing strategy. Consumer sentiment remains cautious due to the concentrated launch of new cars at the Beijing Auto Show at the end of April, and the delivery of new cars still needs to pick up to make a significant contribution to sales volume. 2) Overseas performance continues to be strong, with several car companies achieving high year-on-year export growth of 57%-245% in April. The bank attributes this to the increase in import volume of new cars in previous periods and rapid expansion of overseas channels. At the same time, rising oil prices are accelerating the penetration of new energy vehicles overseas, which is positive for the export of vehicles from Shanxi Guoxin Energy Corporation.