HK Stock Market Move | New energy vehicle companies are trading higher in the early session. Institutes believe that the impact on domestic brands in China from the current round of tariffs will be minimal, and the impact on overall vehicle exports will be limited.

New energy vehicle companies rose in early trading, as of press time, LEAPMOTOR (09863) rose 7.54% to HK$44.95; NIO-SW (09866) rose 6.73% to HK$26.15; XPeng Motors-S (09868) rose 5.46% to HK$68.55; GEELY AUTO (00175) rose 5.07% to HK$14.08; LI AUTO-W (02015) rose 4.06% to HK$83.35. BOCOM INTL released a research report stating that in this round of tariffs, Chinese domestic brands are not affected, while the United States is mainly targeting Korean, Japanese, and German car companies that export a large quantity of cars to the U.S. Chinese car companies' overseas expansion will focus on countries along the "Belt and Road" initiative, Southeast Asia, and Europe to accelerate localization and regionalization of the supply chain. On April 3, China and the EU announced the restart of negotiations on electric car anti-subsidy pricing commitments, aiming to overcome trade barriers and achieve win-win results. At the same time, Chinese parts manufacturers will follow car companies to set up factories overseas to reduce transportation costs, improve supply chain efficiency, and gain advantages. Huafu Securities' new energy vehicle industry analyst believes that by 2024, Chinese car exports to the U.S. will only account for 1.8% of China's total car exports, with a market share in the U.S. of less than 0.6%, and most of these are models produced in China by Sino-US joint ventures and then sold in the U.S. The impact of U.S. tariffs on Chinese car exports is not significant, but rather more of an emotional impact.