Auto stocks led gains in Hong Kong trading. As of press time, NIO-SW (09866) climbed 4.22% to HK$50.15; GAC GROUP (02238) advanced 3.6% to HK$3.45; BYD COMPANY (01211) rose 3.35% to HK$108; and LEAPMOTOR (09863) gained 2.87% to HK$62.7.

The rally followed news that eight government departments recently released the "Automotive Industry Stable Growth Work Plan (2025-2026)." The plan sets key objectives for 2025: achieving total vehicle sales of approximately 32.3 million units, representing roughly 3% year-over-year growth, with new energy vehicle sales targeting around 15.5 million units for approximately 20% growth. The plan also aims to maintain steady growth in automotive exports and achieve about 6% growth in automotive manufacturing value-added.

Cathay Pacific Haitong Securities issued a research report stating that this plan, building upon previous initiatives including the Ministry of Industry and Information Technology and China Association of Automobile Manufacturers' "anti-involution" proposal and the six-department joint notice on automotive industry network disorder rectification, further clarifies the policy direction toward optimizing management policies and standardizing market competition to foster a healthy and orderly market environment. This establishes a more solid foundation for high-quality development of the automotive industry during 2025-2026.

China's passenger vehicle market demonstrated resilience from January to August 2025, with sales reaching 18.354 million units, up 14% year-over-year. The firm projects that China's passenger vehicle sales could achieve 5% growth in 2026, maintaining stable growth momentum amid a mature market environment.