Hong Kong Stock Anomaly | Auto stocks lead the gains, with the industry leader BYD taking the lead in driving industry expectations to recover. Terminal demand is expected to accelerate its recovery.

Auto stocks lead the gains. As of the latest report, NIO Inc.-SW (09866) rose 16.68% to HKD 44.5; Geely Auto (00175) increased 9.96% to HKD 17.67; XPeng Inc.-W (09868) gained 6.78% to HKD 77.2; BYD Company (01211) rose 2.37% to HKD 99.25.

On the news front, on March 5, BYD officially launched its second-generation Blade Battery and fast-charging technology, setting a new global mass-production charging speed record. Founder Securities released a research report stating that BYD is leading industry technological upgrades. The combination of policy support and new vehicle cycles is triggering sector recovery: from January to February, the auto market was affected by policy continuity, causing short-term demand pressure. However, after the holiday, as replacement subsidy policies accelerate across regions, leading company BYD is first to drive industry expectations upward, and terminal demand is expected to recover more quickly. Coupled with continued strong export performance, industry cycle fluctuations are becoming smoother.

Guolian Minsheng Securities released a research report stating that from January to February, demand for passenger cars was weak, mainly because: on the policy side, some local subsidy policies had not yet officially started; on the supply side, few new models were launched. Since February, both factors have improved. It is expected that once subsidies are in place in multiple regions, auto demand in March will stabilize and rebound. Investors are advised to watch for opportunities on the left side of the demand bottom for passenger cars.