HK Stock Market Move | Automobile stocks collectively declined, with profits in the automotive industry dropping nearly 20% in the first half of the year. The profit margin during this period was only 3.8%.

Automobile stocks collectively declined. As of the time of writing, BAIC MOTOR (01958) was down 3.47%, trading at HKD 0.835; LI AUTO-W (02015) fell 2.63%, at HKD 49.32; Great Wall Motor (02333) dropped 2.06%, at HKD 8.815; and Xpeng Motors-W (09868) decreased 1.74%, at HKD 46.42. In terms of news, data from the National Bureau of Statistics shows that from January to June, the automotive manufacturing industry achieved operating revenue of CNY 51,893.2 billion, a year-on-year increase of 1.8%; however, total profit was only CNY 195.35 billion, down 19.5% year-on-year, with the operating income profit margin falling to 3.8%. Bank of America Securities released a research report stating that the expected rise in raw material costs will exert pressure on the profits of the Chinese automotive industry, highlighting that domestic sales were generally weak in the first half of the year, while strong export growth will become a bright spot in corporate performance during the period. Based on changes in sales forecasts, profit outlooks, and rolling valuation benchmarks, target prices for several automakers, parts suppliers, and dealerships have been significantly lowered.