News on December 29 indicated that the majority of automobile stocks in Hong Kong's stock market trended higher. As of press time,$BYD COMPANY (01211.HK)$、$GEELY AUTO (00175.HK)$surging over 4%,$XPENG-W (09868.HK)$、 $LEAPMOTOR (09863.HK)$、$NIO-SW (09866.HK)$up nearly 6%,$LI AUTO-W (02015.HK)$、 $GWMOTOR (02333.HK)$Increased by more than 3%.
Fangzheng Securities released a research report stating that the Central Economic Work Conference and the Ministry of Finance have clarified the optimization of the 'Two New' policies, with multiple regions selecting platform enterprises for trade-in and renewal programs. According to media reports, national subsidies will continue into 2026, with a maximum subsidy of CNY 30,000 per vehicle, focusing on phasing out old high-emission vehicles while raising the threshold for pure electric driving ranges of new energy vehicles and hybrid models.
The report noted that following the withdrawal of replacement and upgrade subsidies in many regions, no year-end spillover effect was observed in the industry. Coupled with the gradual phase-out of the new energy vehicle purchase tax exemption policy starting from 2026, market pressure during the off-season in Q1 2026 is expected to intensify. However, positive signals from policymakers continued to emerge. Following the release of the compliance guidelines for pricing behavior in the auto industry by the State Administration for Market Regulation, automakers such as BYD and XPeng Motors responded positively, leading to a slowdown in price competition and an ongoing improvement in the competitive landscape. Meanwhile, certain cities have begun implementing work related to the new national subsidies, and the industry is poised to benefit from further clarification of policy details and supplementary supporting measures. The bottom-line configuration value of leading automakers has become more prominent, warranting attention to future policy-driven market catalysts.
Editor/melody