HK Stock Market Move | Automobile stocks across the board are down, with many stocks falling by over 4%. The EU plans to impose additional tariffs on imported plug-in hybrid vehicles from China.

Car stocks are all down, as of the time of writing, Great Wall Motor (02333) fell by 4.75% to HK$9.62; LI AUTO-W (02015) fell by 3.85% to HK$50; Xiaopeng Motors-W (09868) fell by 2.82% to HK$50.05; Guangzhou Automobile Group (02238) fell by 2.22% to HK$2.2. On the news front, according to reports, senior EU officials and industry insiders revealed that the European Commission plans to impose a so-called "anti-subsidy tax" on China's hybrid cars. Starting in 2024, the EU has imposed a five-year "final anti-subsidy tax" on China's pure electric cars. Three sources said that the relevant preparations are ready, and once the majority of EU member states approve, the European Commission can impose tariffs. Huachuang Securities released a research report stating that as June comes to a close, domestic demand remains weak, but is expected to gradually improve in the second half of the year as the base effect decreases. Exports have continued to see high growth, with the core DRIVE strengthening gradually for market expansion, including channel expansion, and overseas inventory levels remain reasonable. The recent plan by the EU to increase tariffs on Chinese plug-in hybrid vehicles is a necessary step logically, but in the future, it will still depend on Chinese car companies building factories overseas, and European tariff policies will accelerate the maturity of Chinese car companies' globalization strategies.