HK Stock Market Move | Auto stocks fall again as adjusted export tax rebate policy for new energy vehicles takes effect, potentially raising export costs for new energy vehicles.

Auto stocks fell again. As of press time, VOYAH AUTO (07489) dropped 4.00% to HK$1.56; CHERY AUTO (09973) fell 3.27% to HK$23.64; Great Wall Motor (02333) declined 2.68% to HK$6.895; XPENG-W (09868) slipped 1.33% to HK$37.1. On the news front, the Ministry of Finance and the State Taxation Administration made it clear that starting from April 1, 2027, the VAT export tax rebate rate for new energy vehicles will be lowered from 13% to 9%. Orient believes that this export tax rebate policy adjustment will raise the export costs of new energy vehicles, and some low-margin export models may come under greater pressure. It is expected to have a certain impact on the export profitability of vehicle manufacturers, but the policy has left a buffer period of nearly half a year, and it is expected that automakers will pass on part of the costs by raising FOB quotes, launching new high-margin models and facelifted models. It is worth noting that the "Notice on Further Strengthening the Management of Automotive Product Innovation Design and R&D Testing Verification (Draft for Comment)" requires standardizing the new vehicle development process and sets minimum requirements and limits for the time and mileage of reliability testing. This will effectively improve the situation of rapid new vehicle launches and facelift competition. In the medium to long term, competitive pressure from the supply side is expected to ease, and compliant companies will benefit from this.