The Zhitong Finance app learned that gains in the auto parts sector expanded in the afternoon. As of press release, Zhejiang Shibao (01057) rose 18.4% to HK$2.51; Nexteer (01316) rose 11.4% to HK$4.69; Yingheng Technology (01760) rose 2.77% to HK$2.97; and Wuling Motor (00305) rose 1.96% to HK$0.52.

According to the news, today, the Ministry of Industry and Information Technology, the Ministry of Public Security, the Ministry of Housing and Urban-Rural Development, and the Ministry of Transport jointly issued the “Notice on Launching Pilot Work on Access to Intelligent Connected Vehicles and Road Traffic”, which means that China has officially launched the commercialization of intelligent connected vehicles and taken a critical step in industrial development. The autonomous driving functions of the intelligent connected vehicles that meet the requirements of this notice include level 3 driving automation and level 4 driving automation.

Open Source Securities pointed out that the wire-controlled chassis is a necessary option for L4 autonomous driving, that the transformation of intelligent and electrified vehicles provides opportunities for wire-controlled chassis, and that wire-controlled chassis is highly deterministic. The core modules of the wire-controlled chassis, wire-controlled suspension, wire-controlled steering, and wire-controlled motion all have high bicycle value. According to Geshe's forecast, the market size of all three directions will grow by no less than 20% in 2022-2026.