Market Performance - Hang Seng Index fell by 403 points, or 1.6%, closing at 24,773 points[1] - Shanghai Composite Index dropped by 42 points, or 1.18%, closing at 3,573 points[2] - S&P 500 decreased by 23 points, or 0.4%, closing at 6,339 points, marking the third consecutive day of decline[2] Currency and Economic Indicators - Hong Kong Monetary Authority bought HKD 39.25 billion during New York session due to a weak HKD[1] - People's Bank of China conducted a 7-day reverse repo operation of CNY 283.2 billion at a steady rate of 1.4%[2] - July's official manufacturing PMI in China fell to 49.3, below expectations[2] Real Estate and Corporate Performance - Top 100 real estate companies in China reported total sales of CNY 2.07 trillion in the first seven months, a year-on-year decline of 13.3%[4] - Internet and related services companies in China generated revenue of CNY 961.3 billion in H1, a year-on-year growth of 3.1%[4] - Sinopec expects H1 2025 net profit to be between CNY 20.1 billion and CNY 21.6 billion, a year-on-year decline of 39.5% to 43.7%[6] Automotive Sector - XPeng Motors delivered 36,717 smart electric vehicles in July, a year-on-year increase of 229%[7] - Cumulative deliveries exceeded 800,000 units as of July, with a total of 233,906 units delivered in the first seven months, marking a 270% year-on-year growth[7]

Market Performance - The Hang Seng Index rose by 129 points or 0.5%, closing at 25,667 points, marking a five-day consecutive increase[1] - The Shanghai Composite Index increased by 23 points or 0.7%, closing at 3,605 points, reaching a nine-month high[2] - The S&P 500 index gained 4 points, closing at 6,363 points, while the Dow Jones Industrial Average fell by 316 points or 0.7%[2] Economic Indicators - The People's Bank of China conducted a 331 billion yuan reverse repurchase operation at a steady rate of 1.4%, resulting in a net withdrawal of 119.5 billion yuan for the day[2] - The RMB/USD midpoint rose by 29 pips to 7.1385, the highest since November of the previous year[2] Automotive Industry - In June 2025, sales of Chinese brand passenger cars reached 1.707 million units, a month-on-month increase of 5.3% and a year-on-year increase of 19.3%, capturing 67.3% of total passenger car sales[3] Corporate Earnings - Kintor Pharmaceutical (00148.HK) expects a net profit increase of over 70% for the six months ending June 2025, exceeding approximately 2.56 billion yuan[4] - Lingbao Gold (03330.HK) anticipates revenue between 7.492 billion to 7.92 billion yuan, representing a year-on-year increase of approximately 75% to 85%[4]

Group 1: Market Overview - The Hang Seng Index (HSI) closed at 23,689, close to the middle line of the Bollinger Bands at 23,718, indicating a neutral technical signal with support at 23,105 and resistance at 24,000 [2] - Investors are divided, with some holding bullish certificates expecting a rebound above 23,800, while others are buying put options anticipating a drop to 19,000 [1] Group 2: Company Analysis - WuXi Biologics (02269.HK) is experiencing a rebound from a low of 23.1, but the overall trend remains bearish with a sell signal from 10 sell and 4 buy indicators, suggesting a cautious outlook with key levels at 21.9 and 20.6 [4] - China Construction Bank (00939.HK) has stabilized above 7.8, with investors speculating a challenge to the 8.0 mark [7] - SMIC (00981.HK) has shown a rebound for two consecutive days, with a buy signal from 12 buy and 3 sell indicators, needing to break resistance at 41.7 and 43.8 to reach 45 [8] - Li Auto-W (02015.HK) has fallen for 10 days, with a current sell signal from 9 sell and 6 buy indicators, indicating a weak trend with support at 101.5 [11] - Sunny Optical Technology (02382.HK) is fluctuating around 65, with a buy signal from 15 buy and 2 sell indicators, suggesting potential upward movement if it breaks resistance at 66.8 [14]

Group 1 - The Hang Seng Index (HSI) shows mixed signals, with some investors optimistic about small bets on bull certificates, while others anticipate a drop to 23,500-23,000 points after the interest rate meeting. The closing price stabilized at 23,710, but the daily trend appears downward, indicating a "sell" signal with short-term weakness [1] - Meituan (03690) has been in a continuous decline, with support at 127.2 and a potential drop below 130. The lower boundary of the Bollinger Bands is at 129, suggesting a weak trend [3] - BYD (01211) is hovering around 130, with a "sell" signal and a weak trend. The lower boundary of the Bollinger Bands is at 121.4, with support levels at 122 and 115 [5] - Hong Kong Exchanges and Clearing (00388) is approaching the middle line of the Bollinger Bands at 409.8, with a "buy" signal. Investors should watch for support at 390 if they are looking for a rebound [8] - Kingsoft (03888) has broken its previous high, rising from 31.5 to 41.3, with a closing price of 40.95. There is still a potential 10% upside to the weekly chart's top at 46.15, but it may require more time [11] - ZhongAn Online (06060) is trying to hold above 20, with a "buy" signal. The stock is currently above the Bollinger Bands' top at 19.3, with support at 18. Investors should monitor stability around 20 [14]

Core Viewpoint - Great Wall Motor Company Limited held its annual general meeting and class meetings for H and A shareholders, where all proposed resolutions were approved by the shareholders present [1][2][3]. Meeting Details - The meetings took place on June 18, 2025, in Baoding, Hebei Province, China, and were presided over by the chairman, Wei Jianjun, with attendance from various directors [2][3]. - The meetings utilized a combination of on-site and online voting methods, with no resolutions being rejected or modified [2][3]. Voting Results - The total number of shares issued by the company was 8,559,533,285, comprising 6,240,757,285 A shares and 2,318,776,000 H shares, with 5,963,903,916 shares (69.68%) represented at the meeting [3][4]. - The resolutions presented at the annual general meeting were approved with significant majority votes, including: - Approval of the audited financial statements for the fiscal year 2024, with 99.97208% of A shareholders and 99.68863% of H shareholders voting in favor [6]. - Approval of the annual report for 2024, with 99.97153% of A shareholders and 99.77272% of H shareholders voting in favor [6]. - Approval of the profit distribution plan for 2024, with 99.97347% of A shareholders and 100% of H shareholders voting in favor [7][9]. Dividend Distribution - The company announced that dividends for H shareholders would be calculated in RMB and distributed in HKD, with a dividend of HKD 0.49233 per H share based on the exchange rate on June 17, 2025 [10][11]. - The dividend payment is scheduled for August 8, 2025, with specific arrangements for mainland individual and corporate investors participating through the Stock Connect program [10][13][14].

Market Overview - The Hang Seng Index is facing resistance at 24,000 points, influenced by a series of financial policies introduced in May to stabilize the market, including interest rate cuts and structural monetary policy tools [2] - Recent US-China trade talks have led to a temporary easing of trade tensions, with tariffs on Chinese imports reduced from 145% to 30% and on US imports from 125% to 10% for a period of 90 days [2] - However, renewed accusations from US President Trump regarding China's compliance with agreements have cast uncertainty over future negotiations [2] Macro Focus - The new round of US-China trade negotiations is centered around rare earth issues, with the Chinese Ministry of Commerce approving a certain number of rare earth export applications [4][9] - The People's Bank of China has increased its gold reserves for seven consecutive months, although the pace of increase has slowed [4][9] - The US non-farm payrolls for May showed an increase of 139,000, the lowest since February, with a revised downward adjustment of 95,000 for the previous two months [4][9] - The US Federal Reserve is expected to maintain a cautious approach towards interest rate adjustments, with two rate cuts anticipated this year [4] Sector Focus - The pharmaceutical sector is viewed positively due to ongoing cooperation between Chinese and US pharmaceutical companies amidst manageable geopolitical risks [8] - Gold mining stocks are also favored as central banks continue to increase their gold holdings in response to geopolitical uncertainties [8] - The electricity sector is expected to benefit from increased demand during the summer, while coal prices continue to decline [8] Company News - BYD (1211) anticipates strong overseas sales this year, emphasizing the importance of international markets and high-end strategies [10] - Geely (0175) has decided against building new factories due to global automotive overcapacity [10] - Horizon Robotics (9660) has been included in the FTSE Global Index for Chinese large-cap stocks, effective June 20 [10] - GAC Group reported a 25% decline in May vehicle sales, with a 29% drop in new energy vehicle sales [10] - Zhihu (2390) reported a net profit of 6.94 million RMB in the first quarter, focusing on high-value users and reducing marketing expenses [10] - Landsea Green Group (2570) announced a placement of shares at a discount of approximately 28% to raise funds for hydrogen fuel cell development [10]

Group 1: Company Insights - The report recommends buying Leap Motor (9863) with a target price of 63.00 HKD, indicating a potential upside of 14.5% from the current price of 57.70 HKD [7][9] - Leap Motor's Q1 2025 performance met market expectations, with revenue increasing 1.87 times year-on-year to 10.02 billion RMB, and a significant reduction in losses to 130 million RMB, benefiting from economies of scale and strategic partnerships [9] - The company has set a sales target of 550,000 units for FY25E, representing an annual growth of 87%, with 173,000 units delivered in the first five months of 2025, which is 30% of the annual target [9] Group 2: Industry Trends - The Chinese automotive industry is expected to see a reduction in price wars as the China Automobile Association and the Ministry of Industry and Information Technology support fair competition and healthy development [9] - The report highlights the strategic partnerships formed by Leap Motor with Stellantis and China FAW Group, which are seen as catalysts for future growth and stock price appreciation [9] - The report notes that the market anticipates a compound annual growth rate (CAGR) of 49% for Leap Motor's revenue from FY24 to FY27, with the current price corresponding to a forecasted price-to-sales ratio of 1.2x for FY25E, slightly below its historical average [9]

Market Overview - The Hang Seng Index is expected to rise to 24,300 points due to the easing of trade tensions between China and the US, with tariffs on Chinese imports reduced from 145% to 30% and on US imports from 125% to 10% for a period of 90 days [2] - The Chinese government is implementing a series of financial policies to stabilize the market, including interest rate cuts and structural monetary policy tools, which are expected to boost investor confidence in the mainland economy [2] Company Performance - Kuaishou (1024) reported a 11% year-on-year revenue increase in Q1, with adjusted profit rising 4%, driven by the commercialization of its AI technology, contributing 150 million RMB in revenue for the quarter [4][10] - Xiaomi (1810) saw a 47.4% year-on-year revenue growth in Q1, with adjusted net profit reaching 10.676 billion RMB, exceeding market expectations [4][10] - Alibaba (9988) is reportedly in talks with investment banks regarding the sale of its stake in ZTO Express (2057) [4][10] - Tencent Music (1698) is acquiring approximately 9% of SM Entertainment for 1.4 billion RMB [4] Economic Indicators - The US Federal Reserve maintained interest rates, citing increased uncertainty in the economic outlook, with expectations of two rate cuts totaling 0.5% this year [4] - China's industrial profits grew by 3% year-on-year in April, marking the fastest growth rate of the year, with total profits reaching 2.117 trillion RMB [8] - The automotive industry in China reported a revenue increase of 7% in the first four months of 2025, but profits declined by 5.1%, indicating rising cost pressures [8][10] Industry Trends - The pharmaceutical sector is benefiting from renewed COVID-19 outbreaks and ongoing cooperation between Chinese and American pharmaceutical companies [7] - New consumption sectors are showing resilience, particularly in low-priced and emotional consumption-related demands [7] - The automotive industry is facing challenges with profitability, as major manufacturers are under pressure to control costs while maintaining quality [10]

Summary of Key Points Core Viewpoint - Great Wall Motor Company Limited announced a final dividend of 0.45 RMB per share for the fiscal year ending December 31, 2024, with the shareholder approval date set for June 18, 2025 [1]. Dividend Information - The dividend type is a final ordinary dividend, with a declaration date of December 31, 2024 [1]. - The dividend will be distributed in HKD, with the exact amount and exchange rate to be announced later [1]. - The ex-dividend date is July 8, 2025, and the record date is July 15, 2025 [1]. Tax Withholding Information - For non-resident corporate shareholders, a withholding tax rate of 10% will apply [3]. - For mainland individual investors and securities investment funds investing through the Hong Kong Stock Connect, a withholding tax rate of 20% will apply [3]. Company Directors - The board of directors includes Wei Jianjun (Executive Director), Zhao Guoqing (Executive Director), Li Hongshuan (Executive Director), He Ping (Non-Executive Director), Le Ying (Independent Non-Executive Director), Fan Hui (Independent Non-Executive Director), and Zou Zhaolin (Independent Non-Executive Director) [2].

Company Recommendations - Leap Motor (9863) is recommended for purchase with a current price of 54.85 HKD and a short-term target price of 60.00 HKD, indicating a potential upside of 13.6% [2][9] - The company has seen a strong response to the launch of its SUV B10, with over 20,000 orders in the first month, which is expected to positively impact its Q2 2025 performance [9] - Leap Motor has formed strategic partnerships with international automotive group Stellantis and domestic giant FAW Group, enhancing its market position and potential for future growth [2][9] Financial Performance - Leap Motor's Q4 2024 results met market expectations, with revenue and net profit turning positive for the first time at 80 million RMB, achieving a gross margin of 13.3%, the highest since its inception [9] - The company has raised its sales guidance for 2025 from 500,000 to 500,000-600,000 units, projecting an annual growth of 87% based on a midpoint estimate of 550,000 units [9] - The first quarter of 2025 saw a year-on-year increase in deliveries by 1.6 times to 87,552 units, representing 16% of the updated annual sales guidance [9] Market Outlook - The market anticipates a compound annual growth rate (CAGR) of 49% for Leap Motor's revenue from FY24 to FY27, with the current price corresponding to a forecasted price-to-sales ratio of 1.2x for FY25, slightly below its historical average [9] - The company is expected to benefit from economies of scale and improved profitability as new vehicle sales continue to rise [9] Macro Environment - The Hang Seng Index is facing initial resistance at 23,000 points, influenced by recent announcements from the U.S. regarding tariffs and economic stimulus measures [2][5] - The Chinese government is expected to increase efforts to stabilize the economy, which may positively impact domestic demand and market sentiment [2][5]