Understanding the Market | Auto stocks' decline widened in the closing hours, with XPeng leading the sector. The State Administration for Market Regulation stated it will strengthen regulation related to the automotive industry
Automobile stocks expanded their losses in the afternoon trading, with XPeng leading the decline, down 4.83%, at HKD 78.8. Great Wall Motor fell 4.02%, GAC Group dropped 3.5%, and Brilliance China decreased by 2.8%. The State Administration for Market Regulation stated that it will strengthen regulation of the automotive industry, including innovating the recall supervision system and regulating issues related to false advertising. Nio responded to the lawsuit from the Government of Singapore Investment Corporation, stating that the case stems from false allegations in 2022
According to Zhitong Finance APP, the decline of automotive stocks expanded towards the end of trading. As of the time of publication, XPeng-W (09868) fell by 4.83%, trading at HKD 78.8; Great Wall Motor (02333) dropped by 4.02%, trading at HKD 14.81; GAC Group (02238) decreased by 3.5%, trading at HKD 3.31; Brilliance China (01114) fell by 2.8%, trading at HKD 3.82.
On the news front, a relevant official from the State Administration for Market Regulation stated on October 17 at the 2025 World Intelligent Vehicle Conference that an innovative recall regulatory system will be established and implemented, including a reporting system for fire incidents involving new energy vehicles, a remote upgrade reporting system for vehicles, and a pilot program for a vehicle safety sandbox regulatory system. Recently, they are jointly researching and drafting a notice with the Ministry of Industry and Information Technology to strengthen the supervision and management of product recalls for intelligent connected and new energy vehicles, and to regulate misleading, exaggerated advertising and irrational competition issues.
In addition, according to Caixin, in response to the "Government of Singapore Investment Corporation (GIC) suing Nio," a relevant person from Nio stated that this case is not a new event and is not related to Nio's recent operating conditions, but originates from the false accusations made by the short-selling firm Grizzly Research LLC in a short-selling report from June 2022. The report is baseless and contains many errors, unfounded speculations, and misleading conclusions
