HK Stock Market Move | Automobile stocks collectively fell back, with car sales in the first half of the year dropping by 20% year on year. Institutions pointed out that the impact of vehicle and vessel tax on the car market is limited.

Car stocks collectively fell back. As of the time of this report, BAIC MOTOR (01958) fell 6.98% to 0.8 Hong Kong dollars; Great Wall Motor (02333) fell 3.2% to 8.48 Hong Kong dollars; Xiaopeng Motors-W (09868) fell 2.97% to 50.6 Hong Kong dollars; LI AUTO-W (02015) fell 2.84% to 47.14 Hong Kong dollars. On the news front, on July 8th, the latest data released by the China Passenger Car Association showed that the retail sales of passenger cars in the country in June were 1.602 million units, a year-on-year decrease of 23.2% and a month-on-month increase of 6.1%. The cumulative year-on-year decline in retail sales of passenger cars in the first half of this year was 20.2%. The China Passenger Car Association believes that the core reason for the retail decline in June was the "collapse of fuel" which promoted the rapid penetration rate of new energy passenger cars, reaching 62.8%, exceeding expectations. It is worth noting that the Ministry of Finance, the State Administration of Taxation, and the Ministry of Industry and Information Technology recently adjusted the preferential policies for vehicle and vessel taxes for energy-saving vehicles and new energy vehicles. Changjiang pointed out that the changes in vehicle and vessel tax policies are expected to increase operating costs, but the overall absolute amount is relatively small, and is expected to have limited impact on the auto market. Unlike the rush to purchase new energy vehicles before the rollback of the new energy vehicle purchase tax at the end of last year, the changes in vehicle and vessel tax policies this time are not expected to bring about a rush to purchase.