Changes in Hong Kong stocks | Auto stocks are collectively rising, and many car companies announce that supplier billing periods of no more than 60 days are beneficial to the long-term healthy development of the automotive industry

The Zhitong Finance App learned that auto stocks rose collectively. As of press release, NIO - SW (09866) rose 3.51% to HK$29.45; BYD shares (01211) rose 2.73% to HK$139.3; BAIC Motor (01958) rose 2.02% to HK$2.02; and Geely Auto (00175) rose 1.8% to HK$17.5.

According to the news, recently, the Ministry of Industry and Information Technology, the State Council's State-owned Assets Administration Commission and other departments have made a series of deployment requirements to guarantee the stability of the industrial chain supply chain and promote the high-quality development of the automobile industry, and many car companies have responded positively. According to Xinhua News Agency, automobile manufacturers such as Geely, Changan Automobile, BYD, and Chery have successively issued statements promising “the payment period shall not exceed 60 days.” Up to now, 8 automobile manufacturers have made commitments to this end.

Dahua Jixian previously released a research report saying that relevant departments are cracking down on predatory pricing, supplier exploitation, and inventory fraud, which is beneficial to the long-term healthy development of the automobile industry. However, overcapacity is still a structural problem, affecting the industry's profit margins in the short term. According to the bank, BYD needs to shift from being price-driven to innovation-driven, adapt to shorter payment cycles, and shift excess inventory to overseas markets. Geely and Xiaopeng have benefited from reduced discount pressure due to their focus on research and development. Geely's high-end electric vehicles are expected to increase its market share, and Xiaopeng's technical advantages will be further highlighted.