Policy and Earnings Drive Auto Stocks to Surge on March 11

On the morning of March 11, the automotive and related sectors in both China’s A-share and Hong Kong markets surged strongly. The HK Stock Connect Auto ETF (159121) rose more than 3%, Geely Automobile climbed over 9% at one point, and CATL’s Hong Kong-listed shares gained over 8%. On the A-share side, battery and energy storage companies such as EVE Energy and Hunan Yuneng also rallied in tandem. This rally was driven by a combination of supportive policies and positive corporate developments. The Chinese government has reaffirmed its commitment to “boosting consumption and upgrading industries,” allocating RMB 250 billion in special treasury bonds to support vehicle trade-in programs and intensifying its “AI+” strategy, thereby strengthening market expectations for intelligent connected vehicles. Meanwhile, CATL reported a 42.28% year-over-year increase in net profit for 2025 and announced a proposed cash dividend exceeding RMB 31.5 billion. NIO achieved its first-ever quarterly operating profit, Geely is set to launch its new Galaxy M7 model soon, and BYD unveiled its second-generation Blade Battery, capable of reaching 97% charge in just nine minutes. These multiple positive catalysts have significantly boosted investor confidence, driving the entire sector higher.