Market Performance - Tesla Model Y dominated the Turkish electric vehicle market with 8,730 units sold in one month, accounting for nearly 50% of the market share [1] - In India, Tesla sold only 600 units in one and a half months [1] - The number of Tesla sales in India (600 units in one and a half months) is equivalent to Tesla's global average sales every three hours [1] Policy and Taxation - Turkey adopted a very low tax rate, opening the door for Tesla [1] - India imposed a 100% tariff, increasing the price of a $40,000 car to $70,000 [1] - The Indian government requires Tesla to build a factory in India before entering the market [1]

Core Insights - The report highlights a stabilization in the US stock market, with investors taking advantage of lower prices, leading to a recovery in major indices [9][11] - The focus of the market has shifted towards corporate earnings and trade agreements, indicating a potential for future growth [9][11] - The report notes a significant outflow of capital from Hong Kong stocks, with net outflows reaching HKD 18.09 billion, the highest since May 12 [9][11] Market Overview - The Hang Seng Index closed at 24,733.45, up 225.64 points or 0.92%, while the Hang Seng Tech Index rose by 1.55% [15][17] - The Dow Jones Industrial Average increased by 585.06 points or 1.34%, recovering losses from previous weeks [11][15] - Notable stock performances included Tesla and Microsoft, both rising by 2.2%, while Amazon saw a decline of 1.4% [11][15] Economic Data - US factory orders decreased by 4.8% in June, marking the largest drop since 2020, aligning with expectations [11] - The report anticipates upcoming economic data releases, including the Purchasing Managers' Index for Hong Kong and China, and the Producer Price Index for the Eurozone [21] Company Recommendations - The report recommends buying shares of WuXi AppTec (2126), a leader in CAR-T cell therapy in China, with a target price of HKD 6.44 [22] - It also highlights The Southern Company (SO) for its stable cash flow and projected growth in electricity demand, making it a strong investment choice [24] - The Allstate Corporation (ALL) reported a revenue increase of 5.85% to USD 16.633 billion, with earnings per share rising significantly, indicating strong performance [25]

Market Overview - The Hang Seng Index is facing resistance at 24,700 points, with a projected P/E ratio of 11 times over the next 12 months [2] - The recent US-China trade talks have led to a temporary reduction in tariffs, but further progress remains uncertain, impacting corporate earnings and capital inflow [2][4] - The Hang Seng Index closed at 23,892 points, down 1.06% year-to-date, while the Hang Seng Tech Index fell by 1.76% [6] Economic Indicators - The US Federal Reserve maintained interest rates, with expectations of two rate cuts totaling 0.5% this year, reflecting cautious optimism about inflation [5][8] - China's June CPI unexpectedly rose by 0.1%, ending four months of deflation, while PPI fell by 3.6%, the largest drop in two years [9] - The National Development and Reform Commission estimates China's economy could reach 140 trillion yuan this year, emphasizing the importance of innovation in economic growth [9] Corporate News - New World Development is reportedly seeking to sell its K11 properties in Hangzhou and Shenzhen, aiming to attract investment from private firms [10] - Longfor Group's debt restructuring plan has been approved by creditors, allowing for adjustments in repayment arrangements [11] - BYD has achieved significant advancements in smart parking technology, promising comprehensive safety coverage for users [10] Sector Focus - Macau's June gaming revenue exceeded expectations, indicating a strong recovery as the summer peak season approaches [7] - The online music sector faces intensified competition, prompting a potential shift of funds towards more visible tech stocks [7] - The global PC shipment volume increased by 6.5% year-on-year in Q2 2025, with Lenovo leading the market share at 24.8% [9]

Trade & Tariff Implications - A 25% tariff on iPhones threatened by Trump could be a short-term positive for Apple if it allows the company to delay implementation through appeasement [1] Geopolitical Strategy - The potential tariff threat is linked to Tim Cook's decision not to accompany Trump to the Middle East, suggesting a possible link between political relations and trade policy [1]

Government & Trade Policy Impact - The industry views Trump's recent targeted remarks towards Apple, regardless of the specific iPhone tariff amount, as a significant signal that cannot be ignored [1] - The primary focus for Apple is negotiating with Trump to avoid or delay the imposition or further increase of iPhone tariffs [2] - Apple might consider altering its DEI (Diversity, Equity, and Inclusion) policies as a bargaining chip to secure a temporary reprieve from Trump's actions [2] - Relocating all iPhone assembly lines for US models back to the United States before Trump leaves office is deemed unrealistic [3] - Trump's opposition to Apple manufacturing iPhone US models in India adds complexity, suggesting Apple may face intermittent tariff threats even with a temporary agreement [3] Financial Implications - For Apple, bearing a 25% tariff on iPhones sold in the US market is considered more favorable than moving iPhone assembly lines back to the US [3]