Subsidy Continuation: China's NDRC will continue the new car subsidy policy next year, offering RMB20,000 for new energy vehicles (NEVs) and RMB15,000 for internal combustion engine vehicles (ICEVs), with additional local government trade-in subsidies.

Price Considerations: Subsidies will decrease for cars priced below RMB150,000, while those priced between RMB150,000 and RMB200,000 will receive full benefits; high-end models remain unaffected by these adjustments.

Market Impact: Companies focusing on high-end car models, such as LI AUTO-W and NIO-SW, are favored, while mass-market brands may struggle due to subsidy reductions and a 5% increase in NEV purchase tax.

Short Selling Data: The article includes short selling data for various companies, indicating significant short selling activity, particularly for NIO-SW and ZHONGSHENG HLDG.

Market Overview: The DJIA fell by 94 points (0.2%) following the Fed's meeting minutes indicating potential interest rate cuts, while Hong Kong's HSI and HSCEI opened lower on the last trading day of 2025.

Tech Sector Performance: Major tech stocks like TENCENT, BABA-W, and MEITUAN-W opened lower, with significant short selling ratios, while BILIBILI-W saw a slight increase.

Chip Manufacturing Policy: Mainland China mandated that chip manufacturers use at least 50% domestically produced equipment for new production capacity, positively impacting SMIC's stock.

Robotics and Automotive Stocks: Robotics stocks like SANHUA and UBTECH opened higher, and the mainland's support for "Two New" policies in 2026 led to mixed performances among automakers, with NIO-SW showing a notable increase.