Market Overview - The Hang Seng Index (HSI) has shown a strong performance over the past six months, starting at 19,600 and reaching a high of 24,800, with a current level around 24,200, indicating a fluctuation of over 5,000 points [1] - The pharmaceutical sector has been the best-performing industry, with notable stocks like Kangfang Biotech (9926), China Biologic Products (1177), and WuXi Biologics (2269) showing exceptional gains [1] - Technology stocks, particularly Xiaomi (01810), have also performed well, with a 74% increase, while NetEase (09999) and Kuaishou (01024) saw gains of 50% and 48%, respectively [1] IPO and Derivative Market - The overall Hong Kong stock market has strengthened significantly in the first half of the year compared to 2023, with notable IPOs such as CATL and increased interest in consumer stocks like Pop Mart (9992) [2] - The issuance of structured products has been active, with the market responding to stock price movements, particularly for high-performing stocks [2] Investment Signals - The current sentiment in the market shows a bullish outlook, with 70% of investors holding bullish positions in HSI bull certificates, while 30% are bearish [5] - Caution is advised as the market lacks strong momentum, and there may be a potential pullback to around 23,700 before any further upward movement [5] Stock Analysis - Xiaomi has recently launched a new product, the YU7 car, which received 200,000 orders within an hour, driving its stock price to around 61, marking a 74% increase in the first half of the year [9] - BYD's sales in June reached 382,000 vehicles, with stock prices showing resilience around the 120 mark, indicating potential for further gains [13] - China Construction Bank has seen its stock price rise above 8, with a strong buy signal indicated for its derivatives [16] - China General Nuclear Power (01816) has shown a steady upward trend, with a buy signal for its structured products [19]

Investment Rating - The report maintains an "Overweight" rating for the automotive industry [4][6]. Core Insights - The automotive industry is experiencing steady growth in consumer demand, supported by favorable policies. The retail sales of passenger cars in China for the first half of June 2025 reached approximately 706,000 units, representing a year-on-year increase of about 20% [16][38]. - The market share of new energy vehicles (NEVs) in May 2025 was approximately 48.7%, indicating a competitive pricing environment with reduced promotional discounts compared to earlier months [16][36]. - The report suggests focusing on companies that lead in smart technology and are aligned with the technological and model cycles, such as XPeng Motors, BYD, Xiaomi Group, and Leap Motor [4][16]. Summary by Sections Market Review - The automotive sector saw a 2.88% increase in the week from June 23 to June 27, 2025, ranking 19th among all primary industries [17][20]. - The automotive parts sector had the highest increase at 4.62%, while passenger vehicles had the smallest increase at 0.08% [20]. Industry Data Tracking - In May 2025, total automotive sales were approximately 2.686 million units, with a month-on-month increase of 3.7% and a year-on-year increase of 11.2% [24]. - The retail sales of passenger cars in May 2025 were about 2.352 million units, reflecting a year-on-year increase of 13.3% [25]. - The price of battery-grade lithium carbonate was approximately 61,150 CNY per ton as of June 27, 2025, showing a 1% increase from June 20, 2025 [40][42]. Industry Dynamics - Tesla launched its Robotaxi service in Austin, USA, and Xiaomi's YU7 car achieved a booking milestone of 289,000 units within one hour [3][45]. - The report highlights the strategic investments in autonomous driving technology by companies like Haibo and the collaboration with Ant Group and CATL [45]. Company Announcements - Asia-Pacific Holdings received a notice of being selected as a supplier for brake calipers and EPB projects [3][47]. - Xin Hongye's subsidiary received a bid notification for a project related to power cable procurement [47].

Group 1 - The core achievement of Xiaomi in the automotive industry is highlighted by the success of the SU7 and YU7 models, with the latter achieving over 240,000 orders in just 18 hours, effectively selling out its annual production capacity [1][3] - Xiaomi's influence, cash reserves, product capabilities, and fan base position it as nearly invincible in the automotive sector, making its success almost inevitable despite competition [3][5] - The company has established a robust ecosystem with smartphones, cars, and various home appliances, ensuring a strong future outlook [5] Group 2 - Xiaomi is actively pursuing new innovative products, with the recent introduction of AI glasses being a potential next big hit, described as a new AI entry point [7][9] - The AI glasses are positioned to enhance user interaction and experience, potentially replacing traditional devices like cameras and headphones [7] - Although the AI glasses are still in the early stages, there is significant potential for growth and development as technology advances [9]

Market Overview - On June 26, A-shares experienced a collective decline, with the Shanghai Composite Index down 0.22% to 3448.45 points, the Shenzhen Component Index down 0.48% to 10343.48 points, and the ChiNext Index down 0.66% to 2114.43 points [1][2] - The total market turnover was 162.31 billion yuan, a decrease of 16.3 billion yuan from the previous day, with over 3600 stocks declining [1] - In sector performance, tourism and hotels, digital currency, oil and gas extraction, and banking sectors saw gains, while innovative drugs, complete automobiles, and photolithography concept stocks faced declines [1] International Market - The U.S. stock market saw gains on June 26, with the Dow Jones Industrial Average up 404.41 points (0.94%) to 43386.84 points, the S&P 500 up 48.86 points (0.80%) to 6141.02 points, and the Nasdaq Composite up 194.36 points (0.97%) to 20167.91 points [2][4] - European stock indices showed mixed results, with the UK FTSE 100 up 16.85 points (0.19%) to 8735.60 points, the French CAC 40 down 0.85 points (0.01%) to 7557.31 points, and the German DAX up 150.97 points (0.64%) to 23649.30 points [3] Commodity Prices - International oil prices increased on June 26, with WTI crude oil up 32 cents (0.49%) to $65.24 per barrel and Brent crude oil up 5 cents (0.07%) to $67.73 per barrel [3][4] Key Developments - A new generation of domestically developed general-purpose processors, the Longxin 3C6000, was released in Beijing, featuring a self-designed instruction system and achieving the highest level of security certification [4] - The semiconductor industry in China is accelerating its domestic production, with a focus on AI computing chips, CPUs, and advanced semiconductor equipment, as external restrictions increase [5] - Xiaomi launched its first SUV, the Xiaomi YU7, with a starting price of 253,500 yuan, achieving over 200,000 pre-orders within three minutes [6] - The Chinese government is advancing flood control infrastructure, including the construction of flood storage areas and enhancing the safety of existing reservoirs [7] Financial Sector Insights - The National Financial Supervision Administration and the People's Bank of China released a plan to establish a high-quality inclusive financial system over the next five years [7] - Tianfeng International Securities has upgraded its license to provide virtual asset trading services in Hong Kong, reflecting the growing interest in virtual assets [8] Institutional Perspectives - Fangzheng Securities suggests that after reaching new highs, sectors like brokerage, technology innovation, and the Hang Seng Tech Index may have short-term rebound opportunities [9] - CITIC Securities notes the growing demand for AI model training and inference, indicating a shift towards system-level solutions in AI computing [10] - Guotai Haitong predicts that the demand for inference computing power will reach 62.2% by 2026, highlighting liquid cooling and high-speed interconnect technologies as investment hotspots [10]

Domestic News - Xiaomi launched its SUV YU7 with a starting price of 253,500 yuan, achieving over 289,000 pre-orders within one hour [3] - The first AI glasses were also released by Xiaomi, priced starting at 1,999 yuan [3] - Honor has received listing counseling registration from the Shenzhen Securities Regulatory Bureau, marking a significant step towards its A-share IPO [5] - The Shanghai Stock Exchange held a meeting to implement the "1+6" policy for sponsor institutions in the Sci-Tech Innovation Board [5] - The National Development and Reform Commission announced that the third batch of funds for the replacement of old consumer goods will be distributed in July [5] - A new generation of domestically developed general-purpose processor, Longxin 3C6000, has been released [5] - The Ministry of Commerce provided updates on the approval of rare earth export applications to the EU, confirming that a certain number of compliant applications have been approved [5] - The National Financial Regulatory Administration and the People's Bank of China jointly released the "Implementation Plan for High-Quality Development of Inclusive Finance in the Banking and Insurance Industries" [5] - Guidelines for the adjustment of the basic medical insurance directory and the commercial insurance innovative drug directory for 2025 have been issued, marking the first inclusion of commercial insurance innovative drugs [5] International News - The U.S. Treasury Secretary requested Congress to remove the "899 retaliatory tax clause" [5] - The yield spread between U.S. 5-year and 30-year bonds has surpassed 101 basis points, the steepest since 2021 [5] - The EU summit did not reach an agreement on a new round of sanctions against Russia, but agreed to extend existing sanctions for six months [5] - The U.S. trade deficit unexpectedly widened in May, with exports experiencing the largest decline since the pandemic began; first-quarter GDP data was revised downwards [5]

Core Viewpoint - Xiaomi is shifting its focus from smartphones to AI glasses, which may play a crucial role in its future growth strategy as smartphone sales decline and the company seeks new revenue streams [1][3][14]. Group 1: Market Context - Smartphone sales have been declining globally for three consecutive years, with IDC reporting a 3.3%-9% year-on-year growth in China due to subsidy policies [5]. - In Q1 2025, Xiaomi's smartphone shipments reached 13.3 million units, a 39.9% increase year-on-year, but the company faces intense competition from Huawei and Apple [6][7]. - Xiaomi's smartphone business now accounts for 83.3% of its revenue, necessitating diversification into new areas like automotive and AI [6]. Group 2: AI Glasses Significance - The AI glasses are seen as a potential new entry point for Xiaomi, moving beyond being just an accessory to smartphones [8][20]. - Unlike other tech companies focusing on high-end products, Xiaomi aims to offer a more affordable and practical solution, with expected pricing between 1499 to 2499 yuan [10][12]. - The glasses are designed to enhance user interaction with the Xiaomi ecosystem, potentially serving as a central hub for smart home and automotive integration [18][23]. Group 3: User Experience and Challenges - Key challenges for the AI glasses include battery life, privacy concerns, and the need for a robust ecosystem of applications and functionalities [26][28][30]. - The glasses must provide a seamless user experience that encourages daily use, similar to how smartphones and smartwatches have become essential [30][31]. - Xiaomi's ambition is to redefine user interaction with technology, making the glasses a vital part of daily life rather than a fleeting trend [33].

Core Viewpoint - The strong demand for Xiaomi's YU7 car model, evidenced by sold-out status and price premiums on second-hand platforms, indicates a positive consumer reception and potential market interest in Xiaomi's automotive venture [1][3][6]. Group 1: Sales Performance - Xiaomi's YU7 car model has seen significant sales, with certain models already sold out on the official Xiaomi car mall [1]. - The standard version of the YU7 car model, priced at 599 yuan, is sold out, while other versions remain available but with purchase limits [1]. - On second-hand platforms, YU7 car models are being resold at a premium, with prices for the standard version increasing by 100-200 yuan, and some listings reaching as high as 888 yuan, reflecting a markup of over 300 yuan from the original price [3]. Group 2: Consumer Preferences - The popularity of the YU7 car model's titanium color is highlighted by a recent poll conducted by Xiaomi's public relations manager, showing it as the preferred choice among consumers [3]. - The strong consumer interest in the YU7 color options suggests a favorable market trend for Xiaomi's automotive products [3]. Group 3: Upcoming Events - Xiaomi has announced that the YU7 will be showcased at the Guangdong-Hong Kong-Macao Greater Bay Area Auto Show from May 31 to June 8, indicating a strategic move to increase visibility and engagement with potential customers [8]. - The actual YU7 vehicles are expected to arrive at dealerships for test drives shortly, further enhancing consumer interaction with the product [6].

Core Viewpoint - The article highlights Xiaomi's strategic advancements in technology and product offerings, particularly focusing on the launch of its self-developed chips, XRING O1 and T1, which are expected to enhance the company's competitive edge in the high-end market and drive growth across various business segments [1][4]. Group 1: Chip Development - The XRING O1 chip, built on a second-generation 3nm process, integrates 19 billion transistors within a 109 mm² area, featuring a 10-core CPU and a 16-core GPU, achieving over 3 million points in AnTuTu benchmarks, placing it among the top-tier flagship chips [1][5]. - The XRING T1 chip is Xiaomi's first 4G long-endurance smartwatch chip, supporting eSIM independent communication, with a 35% improvement in 4G-LTE performance and a 27% reduction in data service power consumption [1][11]. Group 2: Product Launches - The Xiaomi 15S Pro, starting at 5499 yuan, features the XRING O1 chip and is designed for high-end performance [2]. - The Xiaomi Pad 7 Ultra, also equipped with the XRING O1 chip, is Xiaomi's first OLED tablet, marking a significant step in the high-end tablet market, priced from 5699 yuan [2][26]. - The Xiaomi Watch S4, featuring the XRING T1 chip, supports eSIM and is priced at 1299 yuan [2][34]. Group 3: Market Performance - In Q1 2025, Xiaomi's domestic smartphone sales increased by 40% year-on-year, capturing a 19% market share, ranking first in China [2]. - The IoT business is expected to continue its high growth trajectory, benefiting from the expansion of home appliance sales and government subsidies [2][37]. Group 4: Automotive Developments - The Xiaomi YU7, a luxury high-performance SUV, is set to launch in July, featuring the NVIDIA Thor chip and advanced safety technologies, although pricing has not yet been disclosed [3][40]. - The YU7 boasts a maximum power of 690PS and a range of 835 km, making it a competitive offering in the electric SUV market [48].

Core Viewpoint - Xiaomi's YU7 electric SUV is generating significant pre-launch excitement, with reports of scalpers charging high fees for priority access to the vehicle, indicating strong market demand and potential sales success [2][9][18]. Group 1: Product Launch and Features - Xiaomi YU7 is set to be unveiled on May 22, 2023, by CEO Lei Jun, who emphasizes its unique appeal as a luxury high-performance SUV [1][5]. - The YU7 features a new "Gem Green" color inspired by Colombian emeralds, showcasing a dual-layer paint technique that enhances its aesthetic appeal [6]. - The vehicle dimensions are 4999 mm in length, 1996 mm in width, and 1608 mm in height, with a wheelbase of 3000 mm, categorizing it as a mid-to-large SUV [8]. - The YU7 offers both single and dual motor configurations, with the dual motor version achieving a combined power of 508 kW (691 horsepower) and a top speed of 253 km/h [8]. Group 2: Market Demand and Scalping - There is a notable presence of scalpers online, with prices for priority access to the YU7 reaching up to 12,000 yuan, indicating high demand even before the official launch [2][9]. - Reports suggest that scalpers claim to have internal access to purchase slots, with some offering services to expedite the buying process through software [12][16]. - Xiaomi's sales team has publicly denounced these scalpers, warning potential buyers of the risks involved and asserting that all purchases should be made through official channels [18][19]. Group 3: Sales Performance and Market Position - Xiaomi's automotive sales have seen a decline over three consecutive weeks, with reported sales of 7,000, 5,700, and 5,200 units in the respective weeks [22]. - The YU7 is viewed as a critical model for Xiaomi to expand its market presence, with analysts suggesting it could challenge the dominance of Tesla's Model Y in the electric SUV segment [22]. - The domestic market for B-class and above electric SUVs is currently led by the Model Y, which sold 556,700 units out of a total of 1.66 million units in 2024 [22].