Gasgoo Munich- Hong Kong’s auto sector rallied on February 10, lifting shares across major automakers. BYD led the charge with a gain of about 4%, while Chery Automobile climbed more than 2%. Leapmotor, NIO, and Geely all advanced by over 1%. XPENG, Great Wall Motor, and Seres also posted gains.
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Analysts attribute the sector’s surge to recently clarified policies aimed at boosting consumption. On February 6, the Ministry of Commerce held a symposium with automakers to discuss vehicle circulation and consumption. Vice Minister Sheng Qiuping stated that in 2026, the government will combine policy support with innovation. A package of measures—including optimizing trade-in programs, launching pilot reforms for vehicle circulation, and refining industry regulations—will be deployed to expand and upgrade auto consumption.
The highly anticipated trade-in subsidy policy has moved into the implementation phase. According to detailed rules released by the Ministry of Commerce and seven other departments, individual consumers who scrap or sell their old vehicles to purchase new ones will receive direct subsidies. Specifically, those scrapping old cars to buy new energy passenger vehicles can qualify for subsidies of up to 20,000 yuan, while trade-ins for new energy vehicles offer up to 15,000 yuan. The policy took effect on January 1, 2026.
Beyond new car sales, the policy also targets potential across the entire value chain. At a concurrent State Council policy briefing, the Ministry of Commerce pledged to deepen pilot reforms for vehicle circulation and unlock spending power in the aftermarket—covering areas such as customization, rentals, and motorsports. Ministry data shows China’s vehicle ownership has reached 366 million units, signaling vast room for growth in the aftermarket.
