The Zhitong Finance app learned that car dealers had the highest declines. As of press release, Zhongsheng Holdings (00881) fell 4.78% to HK$18.74; MeiDong Auto (01268) fell 3.91% to HK$4.92; Yongda Auto (03669) fell 3.18% to HK$3.04; and Zhengtong Auto (01728) fell 2.56% to HK$0.38.

According to the news, on November 9, the China Automobile Dealers Association released the results of the October 2023 “Auto Dealer Inventory” survey: the comprehensive inventory coefficient for auto dealers in October was 1.70, up 12.6% from the previous month, down 3.4% from the previous year, and the inventory level was above the warning line. The China Automobile Dealers Association said that in order to boost demand growth in the fourth quarter, the Double 12 promotion campaign will be advanced until late November. Car companies have introduced time-limited preferential policies to promote order conversion. Under heavy inventory pressure, dealers are speeding up the pace of sales, digesting inventory, and impacting the annual target.

Furthermore, according to incomplete statistics, as of November 6, 4 car companies have announced price reduction promotions this month. Since October, there have been more than 10 car companies that have offered price reduction promotions. Among them, there is no shortage of popular models such as BYD, Zhiji, Extreme Krypton, and Zero Sport, with a discount margin of up to 51,000 yuan. Industry insiders pointed out earlier that although price cuts can drive sales growth, if price leverage is increased over a long period of time, dealers' losses will increase.