HK Stock Market Move | Automotive stocks have seen significant declines. The first financial management document has recently been released, and there are frequent updates on the progress of automotive industry regulation and involution.

Automobile stocks are among the biggest losers. As of the time of writing, XPENG-W (09868) is down 3.50%, trading at HKD 40.82; Great Wall Motor (02333) is down 1.89%, trading at HKD 7.52; and LI AUTO-W (02015) is down 1.76%, trading at HKD 46.78. On the news front, on September 7, the "Notice on Promoting Automotive Enterprises to Regulate Supplier Payment and Optimize Payment Period Management" was released, marking the first industry-specific payment management document issued at the national level. From the adjustment perspective, the core of this policy is to upgrade the management of a 60-day payment term from a commitment by enterprises and industry initiatives to a standardized industry regulation at the national department level, addressing loopholes against avoidance behaviors during implementation. CMSC released a research report stating that this policy will further promote a redistribution of cash flow between vehicle manufacturers and parts suppliers, with parts suppliers benefiting more directly. Additionally, on September 1, the "Guidelines for Anti-Competitive Conduct and Compliance Construction in the Automotive Industry" were issued, which, for the first time, extend the automotive industry's anti-involution requirements to overseas pricing and marketing competition.