Hong Kong Stock Auto ETF Guotai (520720) rises over 1.5%, new car-making forces' March sales rebound

News updates: domestic new energy vehicle companies have collectively released their March “report cards.” BYD remains in the top spot, with sales down more than 20% year-on-year to slightly over 300,000 units, while overseas sales surged by 65%. Leapmotor’s March deliveries returned to 50,000 units. “XPeng, Li Auto, NIO” deliveries were 35,000, 27,000, and 41,000 units, respectively. Xiaomi Auto delivered more than 20,000 units in March.

Benefiting from positive catalysts, Hong Kong auto stocks rebounded today against the trend. Hong Kong auto ETF Cathay (520720) rose by more than 1.5%, with capital recording net inflows for 5 consecutive days.

Guohai Securities believes that, with the certainty of the phase-out of the new energy vehicle purchase tax incentives and the reduction in trade-in program support, the automotive industry will still have structural opportunities in 2026. Specifically, it looks favorably at opportunities in high-end upgrades of domestic brands, accelerated penetration of intelligentization, and the mass production and implementation of embodied intelligence. The automotive industry and its industrial chain remain in a major cycle of technological transformation. More specifically, it is looking at accelerating profitability in the heavy truck industrial chain, core hardware volume expansion driven by intelligentization, increased value in the cockpit/cab, and the accelerated promotion of robotaxis, as well as high-endization opportunities for domestic brands.

Hong Kong auto ETF Cathay (520720) closely tracks the CSI Hong Kong Stock Connect Automotive Industry Theme Index (Index code: 931239.CSI), selecting 50 constituent stocks, covering high-growth and scarce intelligent-driving targets, including leading companies such as XPeng Motors, BYD, and Li Auto.

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