On July 26th, Guolonghui reported that the National Development and Reform Commission and the Ministry of Finance jointly issued Several Measures to Support Large-scale Equipment Renewal and Consumer Goods Replacement, which increased the subsidy for consumers to replace passenger vehicles with new ones. The subsidy standards for replacement of new energy passenger vehicles or passenger vehicles with a displacement of 2.0 liters or less have been increased to RMB 0.02 million (previously RMB 0.01 million) and RMB 15,000 (previously RMB 7,000), respectively. Bocom International believes that the newly added incentive policy is much stronger than the end of April, which is conducive to further stimulating the renewal of old heavy trucks with low-emission heavy trucks, and accelerating the replacement of old fuel passenger cars. Overall, the bank believes that sales of new energy vehicles and natural gas heavy trucks will benefit from this round of stimulus policies. Quality targets for related commercial vehicle/passenger vehicle sectors include Sinotruk and Weichai Power, BYD, Li Auto Inc and NIO.