Hong Kong Stock Market Update | XPENG-W Falls Over 6%, Leading the Decline in Auto Stocks
Car stocks continue to decline. As of the time of writing, XPENG-W fell 5.07% to HKD 44.95, LI AUTO fell 3.25% to HKD 122, and Great Wall Motors fell 1.05% to HKD 9.42. According to China Securities Journal, the price war in the car market will intensify by 2024. As of January 8th, several car brands, including Avita and Tesla, have launched various promotions. In addition, according to data from Tonghuashun iFinD, in the first three quarters of 2023, the net profit attributable to the parent company of 7 out of 20 A-share passenger car manufacturers declined. Guohai Securities believes that the short-term pessimistic expectations have been largely reflected, and it is expected that this round of adjustment in the sector is nearing its end. The automobile sector has seen more adjustments since November 2023, mainly due to the peak of monthly sales prosperity (November 2023), the peak of event-driven catalysts (announcement of cooperation between Changan and Huawei), and year-end fund ranking adjustments. The bank believes that the current round of adjustment is nearing its end.
Zhitong App learned that the automotive sector continues to decline. As of the time of publication, XPENG-W (09868) fell by 5.07% to HKD 44.95, LI AUTO (02015) fell by 3.25% to HKD 122, and Great Wall Motors (02333) fell by 1.05% to HKD 9.42.
In terms of news, according to China Securities Journal, the price war in the automotive market is intensifying as we enter 2024. As of January 8th, several car brands, including Avita and Tesla, have launched "fancy" promotions. In addition, according to data from THS iFinD, in the first three quarters of 2023, the net profit attributable to the parent company of 7 out of 20 A-share passenger car manufacturers showed a decline.
Guohai Securities believes that the short-term pessimistic expectations have been largely reflected, and it is expected that this round of sector adjustment is nearing its end. Since November 2023, there have been more adjustments in the automotive sector, mainly due to the peak of monthly sales prosperity (November 2023), the peak of event-driven catalysts (announcement of cooperation between Changan and Huawei), and year-end fund ranking adjustments. The bank judges that the current round of adjustment is nearing its end at this point in time.