Financial Association news on August 28th (Editor Hu Jiarong) Today, most of the Hong Kong stock automotive stocks rebounded, with Xpeng Motors-W (09868.HK) leading the way. As of the time of publication, Xpeng Motors-W (09858.HK), Nio Inc-SW (09866.HK), leapmotor (09863.HK), and li auto inc-W (02015.HK) rose by 8.61%, 4.30%, 1.34%, and 0.72% respectively.

Note: Performance of auto stocks.

From the above chart, Xpeng Motors has the highest increase. In terms of news, on October 27th, Xpeng Huitian Flying Car Smart Manufacturing Base officially started construction. This is the world's first flying car factory to scale production using a modern assembly line, and will be used to produce the flight body part of the modular flying car 'Land Aircraft Carrier', with a planned annual capacity of 0.01 million units.

It is understood that Xpeng Huitian Flying Car Smart Manufacturing Base is located in Guangzhou Development Zone, with an initial land area of approximately 0.18 million square meters, planning to layout four major production workshops of composite materials, connection, painting, and final assembly as well as ancillary facilities.

The market is looking forward to the future of flying cars. According to the Civil Aviation Administration of China data, by 2025, the market size of China's low-altitude economy is expected to reach 1.5 trillion yuan, and by 2035, it is expected to reach 3.5 trillion yuan. According to the South China Greater Bay Area Digital Economy Research Institute data, by 2025, the comprehensive contribution of the low-altitude economy to China's national economy will reach 3 trillion to 5 trillion yuan.

A recent research report from Citic Sec also points out that the development of the low-altitude economy has entered a strategic opportunity period. EVTOL is one of the important carriers of the low-altitude economy and is a new market increment. Technologically, EVTOL is based on technologies such as electric vehicles, self-driving cars, and 5G, surpassing market expectations in technological maturity. In terms of policies, global policy support resonates, with low-altitude becoming an essential part of major power competition.

What is the latest progress in the EU's anti-subsidy investigation into Chinese electric cars?

In addition to the hot topic of flying cars, there have been new developments in the controversy between China and the European Union in the electric vehicle industry regarding anti-subsidy.

Minister of Commerce Wang Wentao video-conferenced with European Commission Executive Vice President and Trade Commissioner Dombrovskis on the 25th to engage in a professional, practical, frank, and constructive exchange on the EU's anti-subsidy case against electric vehicles from China. China agreed to immediately initiate the next stage of consultations and welcomed the European team to visit China as soon as possible.

As early as October 4th last year, the European Commission initiated an anti-subsidy investigation on electric vehicles imported from China and started imposing temporary anti-subsidy duties on Chinese electric vehicles on July 4th this year. On August 20th, the EU released a draft ruling on the anti-subsidy investigation of Chinese electric vehicles, proposing anti-subsidy duties ranging from 17% to 36.3% on Chinese electric vehicles.