HK Stock Market Move | Car stocks continue to rebound. Institutions believe that the pessimistic expectations of domestic demand have been priced in and are optimistic about the high-end and overseas market prospects of the automobile industry.

Car stocks continue to rebound, at the time of publication, BYD COMPANY (01211) rose 5.49% to 82.6 Hong Kong dollars; LEAPMOTOR (09863) rose 5.27% to 36.74 Hong Kong dollars; Chongqing Sokon Industry Group Stock (09927) rose 4.79% to 48.12 Hong Kong dollars; GEELY AUTO (00175) rose 3.75% to 17.97 Hong Kong dollars. On the news front, according to the statistics of the China Association of Automobile Manufacturers from June 1st to 21st, the national passenger car market retail sales were 913,000 vehicles, a year-on-year decrease of 23%, an increase of 7% month-on-month, and the penetration rate of new energy vehicles maintained a high level of 63.8%, gradually recovering from a low level on a weekly basis. China Securities Co., Ltd. pointed out that the automotive sector has been bottoming out significantly since the end of April, with pessimistic expectations of domestic demand possibly already priced in, and continued optimism for the high-end and overseas market trends in the automotive industry for the whole year. Sinolink pointed out that looking ahead to the second half of the year, the core changes in the automotive industry include the continued rapid growth in overseas markets, the continuous deepening impact of AI on automobiles and the turning point for intelligent driving, and the possibility of an upward trend in domestic demand, especially in the mid-to-high-end market. In terms of complete vehicles, with overall domestic sales under pressure, exports are expected to continue to exceed expectations, with opportunities in the market of over 400,000 units, and good prospects for car companies with high growth in export sales and greater performance elasticity in high-end models.