Trade-in Subsidy Policy Update: China has updated its trade-in subsidy policy for passenger vehicles, maintaining the subsidy cap but changing the structure for 2026 to be a percentage of vehicle price rather than fixed amounts.

Market Consolidation Impact: The new subsidies are expected to accelerate market consolidation in the entry-level vehicle segment, particularly for models priced below RMB160,000.

Performance of Major Automakers: Major automakers like BYD, Geely, and GWMOTOR are positioned to benefit from scale advantages and cost control, contrasting with smaller competitors facing losses.

Commercial Vehicle Subsidies: Subsidies for commercial trucks and city buses remain unchanged, which is anticipated to benefit companies like YUTONG BUS and SINOTRUK.

Vehicle Sales Performance: GWMOTOR reported approximately 124,020 vehicle sales in December 2025, reflecting an 8.33% year-over-year decline, while total sales for the year reached about 1.32367 million units, marking a 7.33% increase from the previous year.

Short Selling Activity: The company experienced short selling of $36.65 million, with a short selling ratio of 12.535% as of December 31, 2025.

Focus on New Industries: The 15th Five-Year Plan emphasizes the regulation and innovation of the "New Three Industries"—new energy vehicles, lithium batteries, and photovoltaics—as key drivers for China's high-quality development and global competitiveness in the green industry.

Market Challenges: Despite their potential, these industries face challenges such as disordered competition and the need for a stable core advantage, necessitating measures to ensure fair competition and industry concentration.

Stock Market Response: Following the announcement, auto-related stocks saw significant gains, with companies like GEELY AUTO, BYD, and NIO experiencing notable increases in their share prices.

Investment Recommendations: Analysts are recommending investments in companies like XINYI SOLAR and FLAT GLASS, anticipating stabilization in photovoltaic glass prices and costs in the upcoming year.

Stock Performance: GWMOTOR (02333.HK) saw a slight increase of 0.875% with a short selling amount of $32.10 million and a ratio of 21.776%.

Sales Achievement: The WEY brand's new Gaoshan model has surpassed 10,000 deliveries in mainland China for two consecutive months, indicating strong sales performance.

International Expansion: WEY is accelerating its overseas expansion efforts, with the 'GaoShan 7' model recently arriving in Hong Kong for road testing.

Market Context: The stock quote for HK stocks is delayed by at least 15 minutes, and the short selling data is current as of December 12, 2025.