Changes in Hong Kong stocks | Zhongsheng Holdings (00881) rose more than 4% in the morning, BMW China cut recommended retail prices by up to 20%, and Dama says dealers will benefit in the short term

The Zhitong Finance App learned that Zhongsheng Holdings (00881) rose more than 4% in the morning. As of press release, it had risen 4.47% to HK$12.4, with a turnover of HK$54.3805 million.

According to news, since January 1, 2026, BMW China has adjusted the recommended retail prices for its 31 main models. Of these, 24 models have dropped by more than 10%, 5 models have dropped by more than 20%, and some models have been reduced by more than 300,000 yuan. Morgan Stanley believes that dealers such as Zhongsheng Holdings will benefit slightly. As the recommended retail price is lowered, dealers can also enjoy lower purchase costs, instantly increasing dealers' gross profit from new car sales. However, the additional rebate received by the dealer may also be reduced in the future, as the rebate amount is determined by the manufacturer.

Furthermore, the 2026 trade-in subsidy is linked to the car price. Damo said that subsidies for cars under 150,000 yuan were reduced year-on-year. Vehicles priced at 150,000 to 200,000 yuan can best use up the discount, and high-end models are not affected by the adjustment of the subsidy policy. Among car stocks, the bank favors the provision of high-end car companies, which also favors high-end brand agents of Zhongsheng Holdings.