Car stocks collectively surged as the National Development and Reform Commission promotes comprehensive regulation of "new three types" industries, including new energy vehicles, to curb "involution" competition

The National Development and Reform Commission's Industry Development Department published an article titled "Vigorously Promoting the Optimization and Upgrading of Traditional Industries," pointing out that looking ahead to the 14th Five-Year Plan period, the key to the "new three types" industries such as new energy vehicles, lithium batteries, and photovoltaics lies in regulating order and leading innovation. The "new three types" industries are advantageous industries cultivated by China under intense market competition and are a new engine for the high-quality development of China's foreign trade, showcasing China's strength in the global green industrial transformation, but they also face challenges such as disorderly market competition and unstable core advantages.

During the 14th Five-Year Plan period, it is necessary to comprehensively rectify "involution-style" competition, maintain a fair competitive environment, increase industry concentration, and create a global technological leadership hub. Regulate market competition order, deeply implement the fair competition review system, strengthen price monitoring and quality inspection, and prevent disorderly low-price competition. Strengthen supply chain governance, ensure payment to small and medium-sized enterprises, and create a good ecosystem of mutual benefit and win-win in the industry. Increase efforts in technological innovation to consolidate technological leadership advantages. Strengthen macroeconomic regulation, adhere to market-oriented and legal means to promote the exit of backward and inefficient production capacity. Strengthen industry self-discipline, leverage the role of industry associations, guide enterprises to cultivate differentiated competitive advantages, and promote entrepreneurial spirit.

Affected by the news, automotive-related stocks collectively rose this morning (29th), with Geely (00175.HK) opening up 3.31%, reaching a high of HKD 17.9, currently reported at HKD 17.69, up 4.55%. BYD (01211.HK) opened up 3.53%, reaching a high of HKD 98.5, currently reported at HKD 98.4, up 5.13%.

The "Wei Xiaoli" trio performed well, with Li Auto-W (02015.HK) opening up 3.07%, reaching a high of HKD 67.75, currently reported at HKD 67.35, up 3.54%. NIO-SW (09866.HK) opened up 3.75%, reaching a high of HKD 41.2, currently reported at HKD 40.88, up 6.35%. XPeng-W (09868.HK) opened up 5.12%, reaching a high of HKD 80.85, currently reported at HKD 80.1, up 5.26%.

Changqi (02333.HK) rose 4.5%, GAC (02238.HK), Chery (09973.HK), and Seres (09927.HK) each rose about 3%. Leapmotor (09863.HK) issued domestic shares to FAW at a premium of 10.7%, rising 3.8% in early trading. Xiaomi-W (01810.HK) opened lower but later rose 0.5%