MOFCOM Pushes for Upgraded Auto Consumption Policies, HK Auto Stocks Rally

On February 10, Hong Kong-listed auto stocks generally rose, with BYD Company up about 4%, Chery Automobile gaining over 2%, and Leapmotor, NIO, and Geely all climbing more than 1%. XPeng, Great Wall Motor, Seres, and others also posted gains. This rally followed news that China’s Ministry of Commerce recently held a symposium with automakers to discuss measures aimed at boosting automobile circulation and consumption. It is reported that by 2026, the Ministry of Commerce, in collaboration with relevant departments, will drive growth through a dual approach of policy support and institutional innovation—integrating existing measures with new policies—to optimize the vehicle trade-in program, launch pilot reforms for auto circulation and consumption, and improve industry regulatory frameworks, all to expand and upgrade auto consumption through multiple coordinated initiatives.