HK Stock Market Move | Car stocks generally rebounded, LI AUTO-W (02015) rose nearly 4%, institutions are optimistic about April sales performance.

Car stocks are generally rebounding. As of the time of writing, LI AUTO-W (02015) rose 3.8% to HK$90.1; NIO-SW (09866) rose 3.77% to HK$27.55; LEAPMOTOR (09863) rose 2.59% to HK$45.5; XPENG-W (09868) rose 2.39% to HK$75.1. On the news front, data from the China Passenger Car Association showed that from April 1-13, the national retail sales of new energy passenger cars reached 275,000, a 15% increase from the same period in April of last year, but a 17% decrease from the previous month. The retail penetration rate of new energy vehicles was 53.3%, with a total retail sales of 2.695 million units so far this year, a 34% increase from the same period last year. The association pointed out that the national policy orientation to promote domestic demand has become increasingly evident, and the effect of stabilizing domestic demand in the passenger car market will continue to be reflected. The retail trend of passenger cars in April is stable and positive. BOCOM INTL believes that the recent high tariffs imposed by the United States on China will have minimal impact on Chinese car exports to the United States, as Chinese car exports to the United States in 2024 are expected to be only 116,000 units, accounting for less than 2% of total Chinese car exports, mainly consisting of American brand vehicles being returned. Therefore, the bank believes that Chinese domestic car brands will not be significantly affected by the US tariff increase. Looking ahead to April, the 2025 Shanghai Auto Show will be held from April 23 to May 2, combined with the implementation of consumption promotion policies in various regions, as well as the demand for travel during the Labor Day holiday, is expected to drive car consumption. Guosen also stated that under the current geopolitical background, as a consumer product, cars are expected to benefit from stimulus policies, and they are optimistic about passenger cars and domestically produced substitute components.