HK Stock Market Move | Automobile stocks lead the decline as the fuel vehicle market triggers a wave of price cuts. In April, retail sales of passenger cars decreased by more than 20% year-on-year.

Car stocks lead the decline, as of the time of publication, LI AUTO-W (02015) fell 9.33% to HKD 68.55; Great Wall Motor (02333) fell 3.66% to HKD 11.07; Guangzhou Automobile Group (02238) fell 2.61% to HKD 2.61; Xiaopeng Motors-W (09868) fell 1.06% to HKD 60.65. On the news front, multiple fuel vehicles have recently started to reduce their prices simultaneously. On May 15th, Chongqing Changan Automobile launched the Yidong Classic Edition with a price of 64,900 yuan, a 26% decrease from the guidance price of 87,900 yuan. According to the latest data disclosed by Cui Dongshu, Secretary General of the China Passenger Car Association, in April, the average price reduction of new conventional fuel vehicles reached 23,000 yuan, with an average reduction of 17.2%. It is worth noting that the latest data from the China Passenger Car Association shows that in April, the national retail sales of passenger cars reached 1.384 million units, a year-on-year decrease of 21.5% and a month-on-month decrease of 16%. The penetration rate of new energy vehicles has greatly increased to 61.3%. Huaxing Securities points out that the continuous rise in oil prices since March has had a significant impact on domestic fuel vehicle sales. Consumer demand is accelerating the shift from fuel vehicles to new energy vehicles, making the market's "oil-electric bifurcation" trend more pronounced.