The Zhitong Finance App learned that China Merchants Securities International released a research report saying that increased policies and peak season effects improved the economy in the fourth quarter, and they are optimistic about the companies BYD (01211) and Geely Auto (00175), whose policy dividends resonate with the new car cycle. In addition, the explosion of the new Xiaopeng Motor-W (09868) Mona improved product cycle certainty, moved the valuation base period forward, and raised the Group's target price from HK$36 to HK$50.

According to data from the Passenger Federation, the mainland sold 2.15 million passenger cars in August, down 3.9% year on year and up 9.6% from quarter to quarter. Among them, independent brands continued to be strong, with a year-on-year increase of 12%, while mainstream joint ventures continued to decline, falling 30% year over year. In the first eight months of this year, the industry sold a total of 15.94 million vehicles, up 3.7% year on year. Looking ahead to September entering the peak season of the industry, supply and demand are expected to continue to strengthen.

The bank said that increased subsidies help drive the peak season effect. Economical new energy vehicles are highly flexible, and it is expected that BYD shares and Geely Auto will benefit the most. Furthermore, the A-class car market has a capacity of nearly 8 million vehicles, and the penetration rate of new energy sources is low. Following the BYD Yuan Plus, sales of new vehicles such as Geely Galaxy E5 and Xiaopeng's Mona 03 have exploded. A-class pure electric vehicles already have the advantages of high cost performance and high intelligence, and have begun to seize fuel vehicle market share on a large scale.