Hong Kong Stocks Movement | ZHONGSHENG HLDG (00881) Rises Nearly 4% as Auto Industry Anti-Involution Efforts Deepen; Company Actively Optimizes Network and Brand Strategy

Stock News12-15

ZHONGSHENG HLDG (00881) surged nearly 4%, reaching HK$11.51 by the time of writing, with a trading volume of HK$36.1 million. The uptick follows the release of the "Automotive Industry Price Compliance Guidelines (Draft for Comment)" by China's State Administration for Market Regulation on December 12, aimed at standardizing pricing practices in the auto sector. The guidelines detail compliance requirements for automakers, covering pricing strategies from vehicle production to parts manufacturing and sales. Analysts at Shenwan Hongyuan noted that the industry's anti-involution measures have seen tangible progress, with the new regulations reflecting strong regulatory resolve. Industrial Securities highlighted ZHONGSHENG HLDG's leadership in China's luxury car dealership market, emphasizing its focus on high-end automotive services to sustain steady after-sales growth. The company is also advancing network and brand optimization, expected to enhance new car sales scale and profitability. Since November 2024, ZHONGSHENG has completed its largest-ever network optimization, adding 57 dealerships and 20 service centers, including 48 luxury brand outlets.

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