Auto stocks are leading the market downturn, with XPeng-W (09868) dropping 3.50% to HK$40.82, Great Wall Motor (02333) falling 1.89% to HK$7.52, and Li Auto-W (02015) declining 1.76% to HK$46.78 as of the latest trading session.

On the news front, September 7 saw the release of the "Notice on Promoting Automobile Enterprises to Standardize Supplier Account Payment and Optimize Payment Cycle Management," marking the first national-level document targeting payment cycle management for a specific industry. The policy upgrades the 60-day payment cycle governance from corporate commitments and industry initiatives to an official regulatory standard at the national department level, while also closing loopholes that companies may exploit to circumvent compliance.

According to a research report from China Merchants Securities, this policy will further accelerate the redistribution of cash flow between vehicle manufacturers and component suppliers, with parts companies standing to benefit more directly. Additionally, on September 1, the "Guidelines for Overseas Competitive Behavior and Compliance Building in the Automobile Industry" were issued, marking the first time anti-involution requirements in the auto sector have been extended to overseas pricing and marketing competition.