Auto stocks fell broadly, with XPENG-W (09868) down 4.16% at HK$36.88, LI AUTO-W (02015) down 2.00% at HK$44, and GWMOTOR (02333) down 1.54% at HK$7.055.

On the news front, the Ministry of Finance and the State Taxation Administration announced that starting April 1, 2027, the value-added tax export rebate rate for new energy vehicles will be lowered from 13% to 9%. Cui Dongshu, head of the China Passenger Car Association, said the reduction in the NEV export tax rebate rate from 13% to 9%, with a relatively long buffer period reserved, is a structural policy optimization within expectations. The consumption tax rebate policy remains unchanged, and this is not a comprehensive tightening of export support. "In the short term, the 4 percentage point cut in the rebate rate will raise export costs, with low-margin affordable models under greater pressure and industry divergence intensifying." According to Cui Dongshu's assessment, although this brings short-term challenges to the industry, the foundation of China's NEV export growth is the systemic competitiveness formed by the industrial chain, the three electric systems, and intelligent technology, rather than rebate benefits. The overall export growth trend will not be reversed.