The retail market for passenger cars is gradually improving, the Hong Kong stock automotive sector is rising, and the Cathay Hong Kong Automotive ETF (520720) increased by over 1.8% in the afternoon.

The retail market for passenger cars is gradually improving, leading to an upward trend in the Hong Kong stock automotive sector. On March 16, the Hong Kong automotive ETF Guotai (520720) rose over 1.7% in the afternoon.

Huachuang Securities pointed out that since March, the retail market for passenger cars has begun to recover, with customer flow and transactions gradually returning to normal. This is mainly due to the digestion of deferred cautious demand from last year and the launch of new models. Attention should be paid to the acceptance of new cars after price increases and the adjustments in automaker strategies. Although the subsidy per vehicle has decreased this year, the coverage may expand. Coupled with the low base in the second half of last year, the industry’s retail growth rate is expected to turn positive in the second half, with an estimated full-year retail growth of 1%, including a 5% increase in electric vehicles. Data for exports in January-February exceeded expectations, with the full year expected to surpass 7.1 million units, driving wholesale growth by about 3%, including an 8% increase in electric vehicles. Due to the decline in demand during the Spring Festival in February, the penetration rate of new energy vehicles remained strong at 48%. Currently, the total channel inventory is about 3.4 million units, an increase of approximately 600,000 units compared to the same period last year.

The Hong Kong automotive ETF Guotai (520720) tracks the Hong Kong Stock Connect Automotive Index (931239), which focuses on securities related to the automotive industry investable through the Hong Kong Stock Connect mechanism. It covers complete vehicle manufacturing, parts, and related supply chains. The index components mainly concentrate on the automotive sector, especially electric passenger vehicles, with a strong focus on the development of the full industry chain for intelligent driving and new energy vehicles, reflecting characteristics of high R&D investment and growth potential.

Risk Reminder: Mentioned stocks are only used for industry event analysis and do not constitute any stock recommendation or investment advice. Short-term fluctuations of the index are for reference only and do not predict future performance, nor do they constitute a promise or guarantee of fund performance. Opinions may change with market conditions and do not constitute investment advice or commitments. Different funds have different risk and return profiles; investors should carefully read the fund legal documents, fully understand product features, risk levels, and distribution principles, and choose products that match their risk tolerance. Invest cautiously.

Daily Economic News

(Edited by: He Chong)

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