Core Conclusions - The market is expected to refocus on investment opportunities in smart vehicles in Q4, driven by the ongoing AI trend and the advancement of L4 capabilities in autonomous vehicles like Robotaxi [2][3] - Key catalysts for smart vehicle development in Q4 include Tesla's V14 release, XPeng's 2026 Robotaxi production plan, and the introduction of new autonomous vehicles by various companies [2] - The report anticipates a significant acceleration in the entry of core players into the L4 market by 2026, marking a pivotal year for Robotaxi [2] Comparison with Last Year - Similarities with last year's Q4 include the spread of AI applications, but this year emphasizes the evolution of AI logic rather than a resonance with automotive logic [3] - The focus has shifted from hardware opportunities and consumer sales to software opportunities and breakthroughs in B2B applications [3] Investment Recommendations - The report suggests a preference for Hong Kong stocks over A-shares, with a focus on software over hardware and B2B over B2C [6] - Recommended investment combinations include XPeng Motors, Horizon Robotics, and Cao Cao Mobility [6] - Key targets from the perspective of Robotaxi include integrated models (Tesla, XPeng, Qianli Technology) and technology providers (Horizon Robotics, Baidu, Pony.ai) [6] Smart Vehicle Market Overview - The report highlights the improvement in autonomous driving capabilities among various automakers, with XPeng, Huawei, and Li Auto leading the first tier [7] - The penetration rate of smart driving in urban areas reached 23.0% in August, with XPeng's smart driving penetration hitting 76.1% [7] - The report notes a significant increase in the sales of smart vehicles, with a projected growth in the Robotaxi market from 0-30% penetration by 2030 [15] Future Outlook - The core task for automotive intelligence from 2025 to 2027 is to achieve a penetration rate of 50%-80% for new energy vehicles [15] - By 2028-2030, Robotaxi is expected to achieve large-scale commercialization, marking a significant breakthrough in the automotive industry [15] Smart Vehicle Supply Chain Tracking - The report provides a detailed analysis of the smart vehicle supply chain, including hardware components (sensors, chips) and software solutions [10] - Key companies in the hardware segment include Sunny Optical, Nvidia, and Desay SV [10] - In the software segment, notable companies include WeRide, Momenta, and Pony.ai [10] Consumer Willingness to Pay - The report discusses consumer willingness to pay for smart features, indicating a growing acceptance of smart driving technologies [13] - The analysis includes projections for the domestic market size of Robotaxi, estimating significant growth in sales and market penetration [14]

Core Viewpoint - The meeting between Zhongyuan Green Industry Ecological Development (Henan) Co., Ltd. and BAIC Group aims to accelerate the implementation of the "oil-to-electric" project, enhancing collaboration in various sectors such as public transportation and carbon neutrality services [1] Group 1: Company Overview - Zhongyuan Green introduced its development history, business operations, and future plans during the meeting, expressing interest in collaborating with BAIC Group in the taxi "oil-to-electric" sector and carbon-neutral service stations for public transport [1] - The collaboration will prioritize bulk procurement of BAIC Group's electric commercial and passenger vehicles, indicating a strategic partnership focused on electric vehicle adoption [1] Group 2: Collaboration Details - The two companies discussed multi-dimensional cooperation paths, including battery asset management, used vehicle evaluation, and digital management platforms, aiming to create a comprehensive "oil-to-electric" integrated solution covering the entire vehicle lifecycle [1] - The meeting signifies the gradual establishment of a carbon reduction ecosystem in public transportation in Henan, leveraging BAIC Group's strengths in research and innovation to drive the "oil-to-electric" initiative forward [1]

Core Insights - The passenger car sector experienced a 1.4% increase on November 10, with Great Wall Motors leading the gains [1] - The Shanghai Composite Index closed at 4018.6, up 0.53%, while the Shenzhen Component Index closed at 13427.61, up 0.18% [1] Passenger Car Sector Performance - Great Wall Motors (601633) closed at 23.73, up 4.17% with a trading volume of 378,200 shares and a transaction value of 889 million [1] - Other notable performers include: - Meizu Tianao (000572) at 10.15, up 2.53%, with a transaction value of 7 billion [1] - BYD (002594) at 99.39, up 2.25%, with a transaction value of 5.51 billion [1] - SAIC Motor (600104) at 16.08, up 0.69%, with a transaction value of 680 million [1] - Changan Automobile (000625) at 12.34, up 0.65%, with a transaction value of 727 million [1] Capital Flow Analysis - The passenger car sector saw a net outflow of 623 million from institutional investors, while retail investors contributed a net inflow of 615 million [1] - Specific stock capital flows include: - BYD (002594) had a net inflow of 5.87 billion from institutional investors, but a net outflow of 3.42 billion from speculative funds [2] - Great Wall Motors (601633) experienced a net inflow of 1 billion from institutional investors, with significant outflows from both speculative and retail investors [2] - Changan Automobile (000625) had a net inflow of 790 million from institutional investors, while experiencing outflows from speculative and retail investors [2]

Core Insights - The Guozheng Free Cash Flow Index has increased by 0.56% as of November 10, 2025, with leading stocks including Yuntianhua, Shoulv Hotel, Changbao Co., Huaren Health, and Baiyin Nonferrous Metals [1] - The Free Cash Flow ETF (159201) has seen a 0.5% rise, marking its fourth consecutive increase, with the latest price at 1.22 yuan [1] - The Free Cash Flow ETF has recorded a net inflow of 260 million yuan over the past five trading days, with a total share count reaching a new high of 4.706 billion shares [1] Performance Metrics - As of November 7, 2025, the Free Cash Flow ETF has achieved a net value increase of 24.13% over the past six months [2] - The ETF's highest single-month return since inception is 7%, with the longest consecutive monthly increase being six months and a maximum increase of 22.69% [2] - The ETF has a historical six-month profit probability of 100% and an average monthly return of 3.2% [2] Risk and Recovery - The maximum drawdown for the Free Cash Flow ETF in the last six months is 3.65%, which is the smallest among comparable funds [2] - The recovery time after drawdown is 35 days, indicating the fastest recovery among similar funds [2] Fee Structure and Tracking Accuracy - The management fee for the Free Cash Flow ETF is 0.15%, and the custody fee is 0.05%, both of which are the lowest among comparable funds [3] - The tracking error over the past two months is 0.052%, demonstrating the highest tracking accuracy among similar funds [3] Top Holdings - The top ten weighted stocks in the Guozheng Free Cash Flow Index account for 54.79% of the index, with major holdings including China National Offshore Oil Corporation, SAIC Motor, Wuliangye, and Gree Electric Appliances [3][5]

Core Viewpoint - General Motors (GM) expresses strong confidence in the Chinese market, showcasing locally innovative models at the expo, emphasizing their vision for the future of personal mobility [1] Group 1: Market Position and Strategy - GM has accumulated deep experience and expertise in the Chinese new energy market, which provides a competitive edge for expanding into international markets [1] - The rapid changes in consumer trends and technological advancements in China are creating new opportunities for global collaboration [1] Group 2: Partnerships and Innovation - GM's joint ventures with SAIC Group are central to maintaining competitiveness in China and will continue to drive local innovation [1]

Group 1 - The China International Import Expo (CIIE) has seen significant participation from local procurement teams, with Shanghai's procurement orders reaching approximately $2.776 billion and additional projects worth about 2.99 billion yuan signed by major enterprises [1][2] - Various local procurement teams from regions such as the Yangtze River Delta, Greater Bay Area, and others are targeting procurement goals starting from 10 billion yuan [1][2] - The Zhejiang procurement team has sent 47,000 professional buyers, focusing on products like biscuits and candies, and has signed import agreements worth 14.5 billion yuan with suppliers from 14 countries [2][3] Group 2 - The CIIE serves as a platform for Chinese companies to reconnect with existing clients and seek new partnerships, with a focus on understanding global product trends and innovations [3][4] - AI and healthcare technologies are key areas of interest, with companies like Dian Diagnostics signing contracts for medical equipment and diagnostic reagents [3][4] - The Fujian procurement team has intentions to purchase over $2.2 billion worth of goods, including medical devices and food products, maintaining stable procurement levels compared to previous years [5][6] Group 3 - Shenzhen's procurement team is expected to exceed previous years' purchasing amounts, focusing on high-tech products and green energy [7][8] - The Anhui procurement team has registered over 1,900 units and expects procurement intentions to surpass previous years, aiming to leverage the CIIE for economic development [8][9] - The Henan province is utilizing the CIIE to enhance its import structure and attract quality resources for economic growth [9][10] Group 4 - The global market environment is shifting, with Chinese companies looking to expand into European markets as traditional export models face challenges [10] - Data indicates a 7% year-on-year increase in China's exports to Europe, highlighting the need for companies to adapt their strategies for better market presence [10]

1. Report Industry Investment Rating No relevant content provided. 2. Core Views of the Report - The penetration rate of the Chinese new energy vehicle market exceeded 30% in 2023 and 50% since 2024. In 2025, high - competitiveness new car products are continuously launched, and the call for "anti - involution" is growing louder [4][121]. - In the overseas market, severe trade protectionism in Europe and the United States brings volatility risks to exports. Attention should be paid to new growth points such as countries along the Belt and Road and the Middle East [4][121]. - In terms of the competitive landscape, the market share of domestic brands continues to expand. Companies with strong product strength, smooth overseas expansion, and stable supply should be focused on [4][121]. 3. Summary According to Relevant Catalogs 3.1 Financial Market Tracking - The weekly price - to - earnings ratios and price - to - book ratios of related sectors and listed companies are presented in the report, including the closing prices and weekly price changes of companies such as BYD, Seres, and Great Wall Motor [14][17]. 3.2 Industrial Chain Data Tracking 3.2.1 China New Energy Vehicle Market Tracking - **China Market Sales and Exports**: Data on China's new energy vehicle sales, penetration rate, domestic sales, and exports are provided, as well as sales data for electric vehicles (EV) and plug - in hybrid vehicles (PHV) [18][20][26]. - **China Market Inventory Changes**: Information on the monthly new additions to new energy passenger vehicle channel inventory and manufacturer inventory is given [27][28]. - **China New Energy Vehicle Manufacturer Deliveries**: Monthly delivery data for new energy vehicle manufacturers such as Leapmotor, Li Auto, XPeng, and NIO are presented [31][32][35]. 3.2.2 Global and Overseas New Energy Vehicle Market Tracking - **Global Market**: Data on global new energy vehicle sales, penetration rate, and sales of EV and PHV are provided [41][42][44]. - **European Market**: Information on European new energy vehicle sales, penetration rate, and sales of EV and PHV in countries like the UK, Germany, and France are presented [45][46][51]. - **North American Market**: Data on North American new energy vehicle sales, penetration rate, and sales of EV and PHV are provided [58][59][60]. - **Other Regions**: Information on new energy vehicle sales, penetration rate, and sales of EV and PHV in regions such as Japan, South Korea, and Thailand are presented [61][62][65]. 3.2.3 Power Battery Industrial Chain - Data on power battery installation volume (by material), export volume (by material), weekly average price of battery cells, and material costs are provided. Information on the production start - up rates and prices of ternary materials, ternary precursors, lithium iron phosphate, and other materials are also included [78][80][85]. 3.2.4 Other Upstream Raw Materials - Data on the daily prices of rubber, glass, steel, and aluminum are presented [101][102][103]. 3.3 Hot News Summaries 3.3.1 China: Policy Dynamics - The State Council Information Office released the white paper "China's Actions for Carbon Peak and Carbon Neutrality", highlighting China's achievements in green and low - carbon transformation and the promotion of new energy vehicles [108]. 3.3.2 China: Industry Dynamics - According to the Passenger Car Association, from October 1 - 31, new energy vehicle retail sales increased by 17% year - on - year, and cumulative retail sales since the beginning of the year increased by 23%. The estimated wholesale growth rate of new energy vehicles in October was 16% [110][112]. 3.3.3 China: Enterprise Dynamics - Seres was listed on the main board of the Hong Kong Stock Exchange on November 5, becoming the first luxury new energy vehicle company with "A + H shares". The Aian UT Super 1 car jointly built by JD.com, GAC, and CATL was officially launched [113][114]. 3.3.4 Overseas: Policy Dynamics - The EU Council reached an agreement on the 2040 climate target, aiming to reduce net greenhouse gas emissions by 90% compared to 1990 by 2040 [115]. 3.3.5 Overseas: Industry Dynamics - In the UK, passenger car sales in September increased by 13.7%, with pure - electric and plug - in hybrid electric vehicles increasing by 29.1% and 56.4% respectively. In the US, car sales in October decreased by 5.1% year - on - year, and the new energy vehicle market was in trouble due to the expiration of tax credits [117][118]. 3.4 Industry Views - In the domestic market, in October, new energy passenger vehicle retail sales were 1.4 million, a year - on - year increase of 17% and a month - on - month increase of 8%. From January to October, cumulative retail sales were 10.27 million, a year - on - year increase of 23%. In October, new energy passenger vehicle wholesale was 1.614 million, a year - on - year increase of 16% and a month - on - month increase of 8%. From January to October, cumulative wholesale was 12.061 million, a year - on - year increase of 30%. The new energy retail penetration rate in October was 58.7%, and the wholesale penetration rate was 55.2% [2][119]. - Globally, from January to September, new energy vehicle sales increased by 30% year - on - year to 15.42 million. In the European market, cumulative sales were 2.78 million, a year - on - year increase of 28%; in the North American market, cumulative sales were 1.42 million, a year - on - year increase of 10%; in other regions, cumulative sales were 0.77 million, a year - on - year increase of 54%. The UK reached a new high in September, mainly due to the government's electric vehicle subsidy policy [2][119]. - In the US, new energy vehicle sales and penetration rates reached consecutive record highs in August and September, mainly because the federal electric vehicle tax credit ($7,500) expired on September 30. In October, car sales decreased by 5.1% year - on - year, Ford's electric vehicle sales decreased by 24.8% year - on - year, and Tesla's sales decreased by 30.4% year - on - year in October after a growth in September. Tesla launched low - cost versions of Model Y and Model 3 in October, and the market reaction remains to be seen [3][120]. 3.5 Investment Suggestions - Focus on the new energy vehicle industry in China, pay attention to new growth points in overseas markets such as countries along the Belt and Road and the Middle East, and select companies with strong product strength, smooth overseas expansion, and stable supply [4][121].

Core Viewpoint - The Chinese electric vehicle (EV) industry is experiencing significant growth and innovation, leading to a loss of global market share for less competitive European automakers [1][3]. Group 1: Market Dynamics - Chinese automotive exports increased by 23% last year, reaching 6.4 million units, significantly surpassing Japan's exports by over 50% [3]. - By 2030, it is projected that Chinese manufacturers will capture 30% of the global market share, up from 21% last year, driven by growth in emerging markets [3]. - In the first nine months of this year, Chinese brands accounted for 5.7% of new car sales in Western Europe, up from 3.2% in the same period last year [3]. Group 2: Competitive Landscape - Chinese manufacturers have transitioned from being cost leaders to technology leaders, enhancing their competitiveness in the global market [1][3]. - The market share of Chinese electric vehicles in Europe has exceeded 10% in the past nine months, indicating strong demand [3]. - European automakers are struggling to compete with Chinese firms, leading to a rapid decline in their global market share [3]. Group 3: Shipping and Logistics - The rapid increase in Chinese automotive exports has created a significant challenge in shipping capacity, with the number of vessels not keeping pace with export growth [5]. - The rental price for a 6,500-car capacity auto transport ship surged from $10,000 per day in August 2020 to $115,000 per day by November 2023, reflecting a tenfold increase [5]. - Chinese companies are increasingly investing in their own shipping capabilities to address concerns over shipping capacity [6]. Group 4: Regulatory Environment - Some Western countries are attempting to impose restrictions on Chinese EV exports, with the U.S. limiting imports and the EU raising tariffs [6]. - The Chinese government emphasizes the importance of fair competition and collaboration in the global EV market, arguing that protectionist measures ultimately harm domestic industries and consumers [6].

- The report predicts adjustments to the constituent stocks of major indices, including CSI 300, CSI 500, CSI 1000, CSI 2000, SSE 50, and STAR 50, based on publicly available index compilation rules and data [5][10][16][18][20] - CSI 300 Index is constructed by selecting the top 50% stocks based on average daily trading volume over the past year, followed by the top 300 stocks ranked by average daily market capitalization, while adhering to a 10% adjustment limit, priority for old samples, and a 20% buffer zone rule [5] - The adjustment prediction for CSI 300 Index involves calculating the average daily market capitalization and trading volume of A-shares over the past year, excluding stocks with suspension, violations, or financial reporting issues [5] - The report defines a "shock coefficient" to measure the price impact and duration caused by passive index fund rebalancing, calculated as: $ Shock Coefficient = (Passive Buy Amount - Passive Sell Amount) / Average Daily Trading Volume $ This coefficient is applied to assess the impact of adjustments on stocks [6][9] - CSI 500 Index is constructed by excluding CSI 300 constituent stocks and the top 300 stocks by average daily market capitalization over the past year, followed by removing the bottom 20% stocks by average daily trading volume, and selecting the top 500 stocks by market capitalization, adhering to a 10% adjustment limit, priority for old samples, and a 10% buffer zone rule [10] - CSI 1000 Index is constructed by excluding CSI 800 constituent stocks, the top 300 stocks by market capitalization, and stocks with insufficient liquidity (bottom 20% by trading volume), selecting the top 1000 stocks by market capitalization over the past year [16] - CSI 2000 Index is constructed by excluding CSI 800 and CSI 1000 constituent stocks, the top 1500 stocks by market capitalization, and selecting the top 2000 stocks by market capitalization over the past year [16] - SSE 50 Index is constructed by selecting the top 50 stocks by market capitalization and liquidity from the Shanghai Stock Exchange, adhering to adjustment rules similar to other indices [18] - STAR 50 Index is constructed by selecting the top 50 stocks by market capitalization from STAR Market, excluding stocks with delisting risks, major violations, or low liquidity (bottom 10% by trading volume) [20] - The report predicts adjustments to the STAR 50 Index, with two stocks, Aojie Technology-U and Shengke Communication-U, being added [20] - The shock coefficients for the predicted adjustments are calculated for each stock, with the highest coefficients observed for stocks such as Guangqi Technology and Ningbo Port in CSI 300, and Sheneng Shares and Suzhou Supor in CSI 500 [7][11][19][21]

Core Insights - The eighth China International Import Expo (CIIE) has seen Shanghai's state-owned enterprises (SOEs) achieve significant procurement agreements, totaling 113 orders worth approximately $2.776 billion, indicating continued growth in participation and engagement [1] - Since the first CIIE, Shanghai's SOEs have organized 177,000 professional attendees and secured a cumulative procurement amount of $22.2 billion, maintaining the leading position among Shanghai's trade delegations for eight consecutive years [2] - A total of 12 projects from 11 major enterprises, including SAIC Motor and Shanghai Electric, were signed with a transaction amount of approximately 2.99 billion RMB, enhancing strategic partnerships with global companies [3] Group 1 - Shanghai's SOEs have played a crucial role in the CIIE, fulfilling major tasks related to infrastructure, transportation, and support services, thereby acting as a driving force for the event [1] - The total exhibition area for overseas enterprises reached 11,500 square meters, with 860 companies registering 21,500 professional attendees, reflecting a strong international presence [2] - The focus on high-quality procurement in sectors such as bulk commodities, biomedicine, high-end equipment, and intelligent systems has led to an increase in both procurement quality and transaction amounts [2] Group 2 - The ongoing reforms and development plans for Shanghai's SOEs are centered around the construction of "five centers," aiming to optimize state asset structures and enhance innovation capabilities [2] - The signing of contracts with global enterprises signifies a deeper collaboration and innovation ecosystem, extending the cooperation across broader dimensions and deeper levels of the industrial chain [3]