According to the Zhitong Finance app, electric vehicle stocks are up across the board. As of press time, NIO-SW (09866) rose 4.33%, to HKD 34.95; LeapMotor (09863) rose 4.25%, to HKD 27; Great Wall Motors (02333) rose 3.84%, to HKD 12.44; Geely Auto (00175) rose 1.93%, to HKD 8.98.

According to the China Association of Automobile Manufacturers, in May 2024, new energy vehicle production and sales will reach 940,000 and 955,000 respectively, an increase of 31.9% and 33.3% year on year, with a market share of 39.5%. In addition, according to the China Passenger Car Association's forecast, the retail sales of narrow passenger cars in June are expected to be about 1.75 million, a month-on-month increase of 2.3%; the retail sales of new energy passenger cars are expected to be about 860,000, a month-on-month increase of 6.9%, with a new energy penetration rate of 49.1%.

Tianfeng Securities pointed out that under the leadership of the Central Finance and Economic Commission, the policy of replacing old vehicles with new ones has been promoted, which has corrected the pessimistic expectations of demand under the policy catalyst. At the same time, with the launch of Ideal's first new car Mega and Xiaomi's SU7, as well as the release of many new cars at the Beijing Auto Show, the supply side is exerting strong force. Southwest Securities suggested paying attention to the new overseas opportunities for companies such as BYD that have laid out in Europe due to policy adjustments in the European Union.