HK Stock Market Move | HARMONY AUTO (03836) fell nearly 3% during intraday trading. Price wars and high inventory levels are affecting the entire auto industry. The company's stock price has halved and is now shrinking further.

HARMONY AUTO (03836) fell nearly 3% during intraday trading, with its share price down over 60% cumulatively from its March 16 high of HK$1.46. As of press time, it was down 2.78% at HK$0.525, with trading volume significantly narrowing. On the news front, Cui Dongshu, Secretary-General of the China Passenger Car Association (CPCA), recently stated that the Chinese auto industry is undergoing deep transformation and intense stock competition in the first half of the year. While domestic automakers' revenue has continued to grow, the growth rate has slowed markedly, and a scale gap with international giants remains. Meanwhile, profits in the industrial chain are highly concentrated in upstream battery leaders, while downstream dealers face a severe survival crisis. Affected by price wars and high inventory levels, the capital chain and supply chain payment arrears problems across the entire industry are becoming increasingly prominent, and systemic risks are mounting. It is worth noting that statistics disclosed by the China Automobile Dealers Association show that the auto dealer inventory warning index for August was 62.3%, up 5.3 percentage points year-on-year and up 1.2 percentage points month-on-month, remaining above the 50% boom-or-bust line for consecutive periods. Manufacturers in the industry continue to push inventory onto dealers, terminal foot traffic is declining, and dealers' capital chains remain under persistent strain. According to HARMONY AUTO's interim report, in the first half of 2026, the Group recorded strong operating results, with total sales reaching 51,674 units. Hong Kong and overseas markets became the main growth drivers, with sales of 40,183 units, accounting for 77.8% of total sales, while mainland China market sales decreased to 11,491 units, accounting for 22.2% of total sales.