Changan and Great Wall surged 9%. I saw news saying it might be due to subsidies? $Great Wall Motor (601633.SH)$ $Chongqing Changan Automobile (000625.SZ)$
Whether the entire auto sector can repeat the strong momentum of the previous cycle depends on this afternoon's performance, not future expectations. This is because future expectations are unknown; only through price movements and data analysis can we assess the extent of subsidy support. Hopefully, there will be more limit-ups in the sector this afternoon, especially for large-cap stocks.
I recalled a significant rise in the auto sector back in May, but only after the rally did we realize that the subsidy was substantial. Thus, from the perspective of stabilizing the economy, the automotive industry chain, worth tens of trillions, boosts employment and drives economic growth—integrating both new and old economies. The old economy refers to real estate.
If this is the case, funds may flow out of the real estate sector. We’ll need to observe for another day or two, especially this afternoon and tomorrow.