Investment Rating - The report assigns a "Buy" rating to several companies in the automotive sector, including BYD (1211 HK), XPeng Motors (9868 HK), and Geely Automobile (175 HK) [8]. Core Insights - The report highlights that the new energy vehicle market maintained a year-on-year growth in July, despite a slowdown in delivery growth due to the traditional off-season for passenger car sales [2][4]. - The overall delivery volume for new energy vehicles in July showed a year-on-year increase of 11.2% but a month-on-month decrease of 6.2% [6]. - The report anticipates an improvement in overall sales in August as the traditional peak sales season approaches [4]. Summary by Relevant Sections Company Performance - BYD delivered 341,030 vehicles in July, a slight year-on-year increase of 0.1% but a month-on-month decrease of 9.7% [6]. - Li Auto delivered 30,731 vehicles in July, reflecting a significant year-on-year decrease of 39.7% and a month-on-month decrease of 15.3% [6]. - XPeng Motors achieved a record delivery of 36,717 vehicles in July, marking a year-on-year increase of 229.4% and a month-on-month increase of 6.1% [6]. - NIO delivered 21,017 vehicles in July, with a year-on-year increase of 2.5% but a month-on-month decrease of 15.7% [4]. - Leap Motor delivered 50,129 vehicles in July, showing a year-on-year increase of 127% and a month-on-month increase of 4% [4]. Market Trends - The report notes that the penetration rate of new energy vehicles has remained above 50% for four consecutive months, indicating a strong market presence [2]. - The report expects that the upcoming launch of new models from various manufacturers will enhance market supply and drive sales during the peak season [4]. Future Outlook - Analysts are optimistic about the performance of BYD, XPeng Motors, and Geely following their new model launches and strategic initiatives [4].

Core Insights - In July, several new energy vehicle companies reported record delivery numbers, with Leap Motor, Xiaomi, and Xpeng achieving significant growth, while Li Auto experienced a substantial decline in deliveries [1][3]. Market Performance - The retail market for narrow passenger cars in July reached approximately 1.85 million units, marking a year-on-year increase of 7.6% but a month-on-month decrease of 11.2% [1]. - The new energy vehicle market showed strong performance, with a retail penetration rate rising to 54.6% and sales reaching 1.01 million units [1]. Company-Specific Performance - Leap Motor led the July sales with 50,100 units, reflecting a month-on-month growth of 4.4% and a year-on-year increase of 126.9%. Cumulatively, Leap Motor's sales for the first seven months reached 271,800 units, achieving 54.4% of its annual target of 500,000 units [2][3]. - Xiaopeng Motors reported a record delivery of 36,700 units in July, a month-on-month increase of 6.1% and a year-on-year increase of 229.4%. Cumulative sales for the first seven months reached 233,900 units, with a completion rate of 66.8% towards its annual target [3][4]. - Li Auto's deliveries fell to 30,700 units in July, down 15.3% month-on-month and 39.7% year-on-year, with cumulative sales for the first seven months at 235,000 units, reflecting a year-on-year decline of 2.2% [3][4]. - Xiaomi's deliveries exceeded 30,000 units for the first time in July, with cumulative sales surpassing 180,000 units in the first seven months, achieving 51.4% of its revised annual target of 350,000 units [4][5]. - NIO delivered 21,000 units in July, a month-on-month decline of 15.7%, with cumulative sales of 135,200 units for the first seven months [4][5]. - Zeekr and Lynk & Co combined sales reached 44,200 units in July, with Zeekr selling 17,000 units and Lynk & Co selling 27,000 units [5].

Core Insights - The Chinese smart driving market is currently facing both challenges and opportunities [1] - A recent simulation test revealed that the pass rate for advanced driver-assistance systems (ADAS) is below 60%, highlighting significant safety shortcomings [2][3] - The test results have prompted industry leaders to acknowledge the need for improvements in technology, particularly in extreme scenarios [2][5] Group 1: Test Results and Industry Response - In a simulation of various driving scenarios, the pass rates were alarmingly low, with only 47% of vehicles able to safely navigate a construction zone at night and 58% able to stop for a child unexpectedly crossing the road [2][3] - Industry executives, including those from Lantu Motors and Tesla, have commented on the test results, emphasizing the need for better technology and safety measures [2][5] - The test has sparked a debate about the marketing language used by car manufacturers, with many downplaying the necessity for driver intervention [4][6] Group 2: Regulatory Actions and Industry Standards - Following a serious accident involving an ADAS vehicle, the Ministry of Industry and Information Technology (MIIT) has mandated stricter regulations on the terminology used in marketing, prohibiting terms that may mislead consumers about the capabilities of these systems [5][7] - The MIIT's actions aim to address two main issues: exaggerated technical claims and the ambiguous assignment of safety responsibilities [7] - The automotive industry is now urged to focus on transparent communication regarding the limitations of their technology and to prioritize user safety [9] Group 3: Market Trends and Future Outlook - The rapid growth of the autonomous driving sector since 2015 has led to an influx of new companies, with many seeking public listings [8] - The evolution of terminology from L2 to "smart driving" has contributed to consumer confusion and misrepresentation of the technology's capabilities [8] - The recent testing and regulatory developments may encourage a more rational approach within the industry, steering focus back to genuine safety improvements rather than marketing gimmicks [9]

Core Insights - The lithium battery sector has shown significant activity since July 2025, outperforming the CSI 300 and SSE 50 indices, with the lithium mining segment leading with an 11% increase [1][2] - Lithium carbonate and lithium hydroxide prices have decreased by 8% and 7% respectively in July, indicating a downward trend in raw material costs [2] - The sales of new energy vehicles in China reached 1.11 million units in June, reflecting a year-on-year increase of 27% and a cumulative increase of 39% for the first half of the year [2][4] Lithium Battery Sector - The lithium battery sector has experienced a recovery in monthly transaction volumes, driven by active trading in solid-state battery segments [1][2] - The three-year historical valuation of over half of the lithium battery-related segments is at a high level, indicating increased market attention [2] New Technologies - Lithium metal anodes are identified as a long-term direction for battery technology, with the potential to achieve energy densities exceeding 500Wh/kg [3] - The first global test of a lithium metal anode solid-state battery was conducted by Mercedes, with predictions of a market size nearing 10 billion yuan by 2030 [3] Energy Storage - In June, domestic energy storage installations fell to 6.9 GWh, a year-on-year decrease of 41%, while cumulative installations for the first half of the year reached 49.0 GWh, a 162% increase [5] - The U.S. energy storage market remained relatively stable, with 3.7 GWh installed in June, reflecting a year-on-year increase of 32% for the first half of the year [5] Investment Recommendations - The lithium battery sector is expected to transition from broad market-driven growth to structural opportunities led by technological breakthroughs and new application areas in 2025 [7] - Key companies recommended for investment include CATL, EVE Energy, and Keda Technology, as well as Xiamen Tungsten [7]

Core Insights - The article discusses the unexpected resilience of the Chinese economy amidst the U.S. Federal Reserve's aggressive interest rate hikes, which have led to significant challenges for the U.S. economy itself [1][4]. Group 1: Economic Resilience - China's economy is described as stable and robust, defying expectations that it would falter under Western monetary pressure [1][3]. - The Chinese government has effectively utilized its $3 trillion foreign exchange reserves to stabilize its markets, countering foreign sell-offs in A-shares with support from state-owned funds [3][4]. Group 2: U.S. Economic Challenges - The U.S. faces a staggering $36 trillion debt burden, with annual interest payments exceeding $1.5 trillion, which is more than the entire military budget [4]. - The commercial real estate market in the U.S. is experiencing a crisis, with office vacancy rates reaching 29% and property values plummeting by 30% [4]. Group 3: Global Financial Dynamics - The article highlights a shift in global financial dynamics, with countries increasingly opting for transactions in currencies other than the U.S. dollar, particularly the Chinese yuan [6]. - The failure of the Federal Reserve's monetary strategy is leading to a reevaluation of global trading rules, as countries seek alternatives to the dollar-dominated system [6].

Group 1 - The Hong Kong stock market showed a positive trend with the Hang Seng Technology Index rising nearly 1%, while the Hong Kong Stock Connect Automotive ETF experienced a slight decline, with notable performances from companies like Leapmotor, which surged over 4% [1] - In the first half of the year, the penetration rate of the new energy vehicle market reached 44.3%, marking a historical high for the same period [1] - Several new energy vehicle companies reported record sales in July, with Leapmotor exceeding 50,000 units for the first time, Xiaopeng delivering 36,700 units, and Xiaomi achieving a monthly sales breakthrough of 30,000 units, reflecting a 20% month-on-month growth [1] Group 2 - Huaxin Securities highlighted that the new energy vehicle industry is benefiting from supportive policies and an improving supply-demand structure, with continuous product launches from battery and main engine manufacturers [1] - The industry has experienced significant price declines, leading to reduced capital expenditures, while the supply-demand dynamics are being optimized, with industry associations and companies actively working to enhance capacity and supply [1] - The overall price level in the industry is at a low point, making it easier for prices to rise than to fall, with strong demand resilience providing good investment opportunities, as core companies in the supply chain are currently valued at historical lows [1] Group 3 - The Hong Kong Stock Connect Automotive ETF is based on the Hong Kong Stock Connect Automotive Index, which focuses on the Hong Kong vehicle sector and includes a higher proportion of passenger vehicles compared to similar indices [2] - The index includes emerging players in the automotive sector, such as Zhixing Technology and Horizon Robotics, and has a higher concentration of intelligent driving companies compared to A-share automotive indices [2] - As of August 1, the index's price-to-earnings ratio (TTM) was 19.82, significantly lower than various A-share automotive indices, indicating a favorable valuation [2]

Market Performance - The Hang Seng Index closed at 24,507, down 1.07% for the day but up 22.17% year-to-date [1] - The Hang Seng Tech Index closed at 5,397, down 1.02% for the day and up 20.80% year-to-date [1] - The Dow Jones Index closed at 43,588, down 1.23% for the day and up 2.45% year-to-date [1] - The S&P 500 Index closed at 6,238, down 1.60% for the day and up 6.06% year-to-date [1] - The Nasdaq Index closed at 20,650, down 2.24% for the day and up 6.94% year-to-date [1] Currency and Commodity Performance - The Renminbi Index is at 96.760, up 1.48% over the last month but down 3.91% over the last six months [2] - Brent crude oil is priced at $71.440 per barrel, up 7.67% over the last month but down 1.33% over the last six months [2] - Gold is priced at $3,295.05 per ounce, down 1.31% over the last month but up 17.05% over the last six months [2] Company News - RWA Group received strategic investment from Meta Strategy, which will support technology development and market expansion [11][12] - InnoTech responded to being selected as a partner for NVIDIA's 800V DC power architecture, indicating that the collaboration has not yet generated substantial orders [13] - BYD reported July sales of 344,296 new energy vehicles, a 10% month-on-month decrease [14] - Apple plans to increase spending on data centers and acquisitions to catch up with competitors in AI [15] Economic Indicators - The US ISM Manufacturing PMI fell to 48 in July, indicating a contraction for the fifth consecutive month [17] - The US has raised tariffs on several Asian countries, with rates reaching up to 40% [16] - Trump's administration announced a 35% tariff on certain imports from Canada, while maintaining exemptions under the USMCA [18]

1. Report Industry Investment Rating There is no information about the report industry investment rating in the provided content. 2. Core Viewpoints of the Report - The anti - involution campaign, initiated by the Central Financial and Economic Affairs Commission, is a 10 - year recurrence of the Juglar cycle. It is expected to have a profound impact on China's economy, with effects surpassing the previous supply - side reform [1][13][16]. - The anti - involution drive rapidly boosts commodity prices, which is the third and final wave of the current Kitchin cycle's upward phase, likely to last until the end of the year [2][17]. - It has a positive impact on listed companies' performance and stock prices. The A - share market shows a wealth effect, attracting more off - market funds [2][24]. - The Fed is likely to resume rate cuts in September 2025 and enter a steep rate - cut phase in 2026. This will narrow the Sino - US interest rate gap, prompting the accelerated return of China's overseas funds [2]. - Global professional investment institutions are reducing their exposure to US assets and increasing their allocation to Chinese assets [2][28][30]. - Gold is in a technical adjustment, and a major opportunity may emerge at the end of the year [2][4][31]. - The anti - involution campaign initiates an upward trend in inflation, opening up downward space for long - term treasury bonds [3][35]. - China is expected to achieve a double surplus in trade and capital, and the offshore RMB exchange rate is likely to strengthen [3][38]. 3. Summary According to the Directory 3.1 Four Economic Cycles - **Kitchin Cycle**: A short - term economic cycle of about 3.5 years. The current upward phase of the Chinese Kitchin cycle started in June 2023 and is expected to peak at the end of 2025, while the US cycle will peak in Q1 2026 [7]. - **Juglar Cycle**: A medium - term cycle of 9 - 10 years, also known as the manufacturing investment cycle. China's current Juglar cycle is in the upward phase and is expected to peak in early 2027 [8]. - **Kuznets Cycle**: An economic cycle related to the housing construction industry with an average length of about 20 years. The current Chinese Kuznets cycle is expected to bottom out around 2030 [9]. - **Kondratieff Cycle**: A long - term cycle of 50 - 60 years, also called the technological innovation cycle. The current Kondratieff depression started in 2020 due to the COVID - 19 shock, is expected to end around 2030, and then enter a 10 - year recovery phase. China is the center of the current technological innovation cycle, with AI and AI humanoid robots as the representative innovations [10]. 3.2 Anti - Involution Campaign - **Campaign Initiation**: On July 1, the Central Financial and Economic Affairs Commission meeting called for in - depth construction of a unified national market, focusing on "five unifications and one opening". Subsequently, various industries carried out anti - involution measures [11]. - **Policy Response to the Juglar Cycle**: It is a response to the manufacturing investment cycle reaching its peak. Similar to the supply - side reform 10 years ago, its goal is to reduce overcapacity, but this time it focuses on emerging industries and the service sector [13][15][16]. - **Differences from the Previous Supply - Side Reform**: It focuses on emerging industries and the service sector, and is expected to have a more far - reaching impact on the Chinese economy [16]. 3.3 Impact on Asset Classes - **Commodities**: The anti - involution campaign drives up commodity prices, which is the third wave of the current Kitchin cycle's upward phase. Prices are expected to rise until the end of the year. After a second - wave correction in late July, they are likely to enter the main upward wave in late August [17][21][23]. - **Equities**: The A - share market shows a wealth effect, attracting off - market funds. The decline at the end of July was a pull - back after breaking through the 3,500 - point platform. The CSI 300 index will have more upward momentum, and the CSI 1000 and CSI 500 indexes are expected to rise more strongly [24][39]. - **Gold**: Gold is in a technical adjustment, and a major opportunity may emerge at the end of 2025 [31][39]. - **Bonds**: The anti - involution campaign initiates inflation, opening up downward space for long - term treasury bonds [35][39]. - **Foreign Exchange**: China is expected to achieve a double surplus in trade and capital, and the offshore RMB is likely to strengthen [38][39].

港股开盘，恒指开跌0.31%，科指开跌0.66%。英诺赛科(02577.HK)开涨4.2%，公司宣布与英伟达达成 合作。比亚迪股份(01211.HK)跌2.9%，7月新能源车销量34.42万辆，环比减少10%。 ...

香港恒生指数开盘跌0.31% 比亚迪股份跌近3% 智通财经8月4日电，香港恒生指数开盘跌0.31%，恒生指数跌0.66%。英诺赛科涨超4%，公司宣布与英 伟达达成合作。比亚迪股份跌近3%，7月新能源车销量34.42万辆，环比减少10%。 ...