Geopolitical Tensions Hammer Auto Stocks: Nearly 90% of Chinese Auto Shares Drop in First Week of March

Global equities came under pressure during the first week of March amid escalating tensions in the Middle East and disruptions to shipping through the Strait of Hormuz, with Chinese auto stocks also suffering significant losses. Although China’s annual Two Sessions unveiled supportive policies—such as vehicle trade-in subsidies and measures to address excessive competition ("involution")—market sentiment remained dominated by energy-related anxieties and inflation expectations. According to data compiled by AutoKline, 90% of the 136 tracked Chinese auto stocks declined, with an average drop of 4.67%. Only 15 stocks posted gains. Harmony Auto led the pack with a weekly surge of 10.42%, driven by deepening collaboration with BYD and robust overseas sales. BYD’s A-shares, Ruqi Mobility, and CATL also recorded modest increases. On the downside, Polestar plunged 29.25% due to lowered delivery forecasts and heightened geopolitical risks. High-valuation intelligent-driving概念股 such as Hesai and Pony.ai all fell more than 10%. While markets may remain volatile in the near term, fundamentals are expected to gradually take center stage as anticipation builds around the upcoming 15th Five-Year Plan and earnings season approaches.