The auto sector soared after the National Standing Committee decided to increase the support policy for auto consumption

On the evening of June 22, the executive meeting of the State Council mentioned that the policy of increasing support for automobile consumption was determined.The meeting pointed out that to further unleash the potential of automobile consumption:

One is to activate the second-hand car market and promote car renewal consumption.For small non-operating second-hand cars, the move-in restrictions on vehicles that meet the National V emission standards will be completely lifted from August 1. From October 1, auto sales companies will implement separate endorsement management and issue temporary license plates when applying for transfer registration.

The second is to support the consumption ofnew energy vehicles.The vehicle purchase tax should be mainly used for highway construction, etc., considering the current actual research on the extension of the new energy vehicle purchase tax exemption policy after it expires at the end of the year.Break the local protection of the new energy vehicle market.

The third is to improve the parallel import policy of automobiles, develop automobile financial leasing in an orderly manner, and support the construction of parking lots.The implementation of the policypredictsan increase of about 200 billion yuan in automobile and related consumption this year.

After the news was fermented overnight, the stock market ushered in a big rise today (June 23), especially the vehicle and auto parts sectors were among the top gainers, and the whole line was red.According to the two major A-share indexes, the automobile sector closed with an overall increase of 5.8%. Among them, Ankai Automobile, King Long Automobile, Xiaokang, Changan Automobile and other stocks hit the daily limit, and Dongfeng Motor, Great Wall Motor, Jianghuai Automobile, SAIC Group, etc. followed suit. .Hong Kong auto stocks also rose in general, with Geely Automobile, Lili Automobile, Weilai Automobile, and Xiaopeng Automobile rising more than 6%.

In the auto parts sector, the two major A-share indexes closed with an overall increase of 6.01%. More than 20 individual stocks including Huaan Xinchuang and Kailong Hi-Tech hit the daily limit, and Jing Forging Technology, Yinlun Shares, and Shuanglin Shares followed suit.

In fact, since the State Council issued the "Opinions on Further Unleashing Consumption Potential and Promoting Continued Recovery of Consumption" at the end of April, it has given confidence in the sluggish stock market, but due to large fluctuations, it is still mostly in a wait-and-see state.

Entering May, with the effective control of the epidemic in many places across the country, the auto industry has accelerated the resumption of work and production, and the auto sector has shown signs of rebound.On the 23rd of the same month, the State Council executive meeting further deployed a package of measures to stabilize the economy, and mentioned a phased reduction of 60 billion yuan in purchase tax for some passenger cars.On the second day after the announcement of the measure, auto stocks rose in an all-round way at the opening of the market, with Zhongtong Bus 8-connector, Ankai Bus, Jianghuai Automobile, Changan Automobile, SAIC Group, Great Wall Motor, etc. following up.Hong Kong auto stocks generally rose, with Geely Auto rising more than 10% at one point.

On May 31, the Ministry of Finance and the State Administration of Taxation announced a halving of vehicle purchase tax (passenger vehicles with a displacement of 2.0 liters and below not exceeding 300,000 yuan); the Ministry of Industry and Information Technology, the Ministry of Agriculture and Rural Affairs, the Ministry of Commerce, the National Energy Administration, etc. The department issued the "Notice on Launching 2022New EnergyVehicles Going to the Countryside Activities".At the same time, many local cities have successively introduced policies to promote automobile consumption, and car companies have formulated relevant measures such as preferential car purchase benefits in response to the policies, jointly promoting the rebound of automobile market demand.

The latest data from the Passenger Car Association shows that the retail sales of the national passenger car market has rebounded rapidly.From June 1st to 19th, the national passenger car market retailed 935,000 units, an increase of 24% over the same period last year; an increase of 43% month-on-month; wholesale 944,000 units, an increase of 34% year-on-year and a month-on-month increase of 52%.

A number of positives have prompted a rebound in demand in the auto market, boosted the confidence of capital and investors in the development of the domestic auto industry, and helped the auto-related sectors to rise rapidly.Some institutions believe that the auto industry is expected to usher in the resonant start of the inventory cycle (model cycle of about 4 years) and the Jugla cycle (capital expenditure cycle of 8-10 years) in the third quarter of this year, ushering in a major layout opportunity in the sector.