Hong Kong Stocks Movement | NEXTEER (01316) Surges Over 7% as China's New Auto Steering Standard Released; Institutions Optimistic About SBW Mass Production

Stock News12-08

NEXTEER (01316) rose more than 7%, reaching HK$6.45 by the time of writing, with a trading volume of HK$55.88 million. The surge follows the release of China's national standard GB17675-2025 "Basic Requirements for Automotive Steering Systems," which will replace the GB17675-2021 standard starting July 1, 2026. The updated standard removes mandatory mechanical linkage requirements and emphasizes safety, failure response, and functional validation for new technologies such as steer-by-wire (SBW) and electric power steering (EPS). The standard was drafted by several leading automakers. Analysts at Guotai Junan Securities believe the new standard marks a critical milestone for SBW's mass production, citing advantages such as optimized cabin space, enhanced L3+ autonomous driving capabilities, variable steering ratios, and improved steering comfort. With standardized regulations, SBW is expected to achieve smooth mass production. NEXTEER, a leading steering system manufacturer, is recommended as a key beneficiary.

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