On November 21, the financial community reported (editor Hu Jiarong) that Hong Kong stocks have been fluctuating recently, and at the same time, the short sell pressure in the market continues to increase, such as $NIO-SW (09866.HK)$、$XPENG-W (09868.HK)$、$GEELY AUTO (00175.HK)$the short sell ratios have all increased to varying degrees.

Specifically, NIO's short sell ratio rose from 35.25% on the 14th of this month to 60.15% yesterday.

Note:$NIO Inc. USD OV (NIO.SG)$The short sell ratio

$XPeng (XPEV.US)$The short sell ratio increased from 19.22% on the 13th of this month to 29.39% yesterday.

Geely Auto's short sell ratio rose from 21.27% on the 14th of this month to 28.68%.

Generally speaking, the increase in the short selling ratio usually means that more investors in the market borrow stocks and sell them, expecting the stock price to fall before buying back the stocks to return, thereby gaining price difference profits. This may manifest as short-term stock price pressure, where the rising short selling ratio may indicate that a certain proportion of investors in the market hold a pessimistic view on the future performance of the stocks, which may cause short-term downward pressure on the stock price.

Moreover, a high short selling ratio may affect market sentiment, leading to a decline in confidence among other investors in these stocks, potentially triggering more selling behaviors and further impacting stock prices.

Continuous boost of market confidence through trade-in incentives.

Although the short selling ratio of auto stocks such as NIO and XPeng remains high, policies like trade-in incentives boost market confidence.

Song Yingjie, Deputy Researcher of the Consumables Promotion Department of the Ministry of Commerce, stated today at the 2024 Auto Finance Industry Summit that the national application volume for scrapping and renewal of cars, as well as national application volume for car replacement and renewal, have both exceeded 2 million copies, totaling over 4 million copies. The daily subsidy application volume has been consistently high, driving a year-on-year growth of over 50% in the national car scrappage volume from January to October.

Furthermore, Wang Du, Vice Chairman of the China Automobile Dealers Association, also mentioned at the 2024 Auto Finance Industry Summit that the 'Trade-in' policy is expected to drive an increase of over 1.6 million passenger vehicles in the annual passenger vehicle market. This year, the passenger vehicle market's retail volume is expected to grow by over 5%. Wang Du also calls for more financial institutions to participate in auto finance services, providing more support for auto manufacturers, dealers, etc., ensuring the normal operation of the auto circulation chain, and offering more diverse personalized auto finance products to our vast consumers.

Editor / jayden