AUTOHOME-S (ASX: 02518) shares rose more than 5% in early trading. At the time of writing, the stock was up 5.46% to HK$35.56.

Key Drivers Behind the Rally

On June 23, nine government departments, including the Ministry of Commerce, jointly issued a notification outlining several measures to cultivate and expand the automotive aftermarket. The document proposes 17 initiatives across six key areas, such as vehicle modification, RV camping, and classic cars, aiming to remove regulatory barriers, optimize supply, and foster new business models.

On the same day, eight departments, also led by the Ministry of Commerce, announced the list of pilot cities for automobile circulation and consumption reform. Forty cities have been selected to spearhead trials focusing on the aftermarket, as well as new car sales, used vehicle distribution, and end-of-life vehicle recycling.

Recent Strategic Developments

It is noteworthy that on June 18, Autohome formally signed an ecological cooperation agreement with Alipay in Hangzhou. Over the past year, the two companies have made progress in areas like traffic sharing, content co-creation, and lead conversion. The user activity and lead-generation capabilities of the Autohome mini-program within the Alipay ecosystem have shown steady improvement.

Building on this foundation, the partnership will be upgraded to focus on three main directions: data infrastructure, ecological co-construction, and commercial collaboration, with the goal of jointly building a sustainable new ecosystem for automotive services.