Core Points - Beijing's Haidian District is launching an automotive consumption subsidy program from October 1 to December 12 to stimulate car sales during the peak season [1] - Consumers can apply for subsidies ranging from 1,000 to 15,500 yuan through the "Dongche Di" app, with a total subsidy pool of 35 million yuan [1] - The program includes a lucky draw with 1,000 additional prizes of 500 yuan each for successful subsidy applicants [1] Subsidy Standards - Fuel vehicle subsidy standards are as follows: - Below 100,000 yuan: 1,000 yuan per vehicle - 1,000,000 yuan and above: 15,000 yuan per vehicle [2] - Additional subsidies for new energy vehicles (NEVs) include: - An extra 500 yuan for NEVs priced at 200,000 yuan and above, in addition to the fuel vehicle subsidy [3] - Detailed subsidy amounts based on vehicle price brackets are provided in a table format [4][5] Additional Information - Participating dealerships will offer in-store discounts and benefits to consumers [6] - Consumers can find more details and inquire through the "Dongche Di" app or customer service hotline [6]

Core Viewpoint - Chery Automobile (09973.HK) plans to globally offer approximately 297 million H-shares, with a pricing range of HKD 27.75 to HKD 30.75 per share, aiming to raise around USD 587 million from cornerstone investors [2][3]. Company Overview - Chery Automobile, headquartered in Wuhu, China, designs, develops, manufactures, and sells a diverse range of passenger vehicles, including both fuel and new energy vehicles, to meet the evolving demands of domestic and international markets [3]. - As of 2024, Chery is the second-largest independent passenger vehicle brand in China and the eleventh-largest globally, according to Frost & Sullivan [3]. Sales Performance - In 2024, Chery's passenger vehicle sales are projected to grow by 49.4% compared to 2023, leading the global top twenty passenger vehicle companies [3]. - The company achieved a 56.0% increase in passenger vehicle sales in China and a remarkable 277.3% growth in new energy vehicle sales in 2024 compared to 2023 [4]. Market Position - Chery is the only company among the top twenty global passenger vehicle manufacturers to experience over 25% growth in new energy vehicle sales, fuel vehicle sales, domestic market sales, and overseas market sales in 2024 [3]. - The company has sold over 13 million vehicles globally and has maintained the highest export volume among independent Chinese brands for 22 consecutive years [4]. Brand Strategy - Chery operates five major brands: Chery, Jetour, Exeed, iCAR, and Zhiji, each targeting different customer segments and market niches [7][8]. - The main brand, Chery, focuses on safety and quality for family users, while Jetour targets family travel and outdoor enthusiasts [7]. Financial Performance - Chery's revenue increased from RMB 926.18 billion in 2022 to RMB 1,632.05 billion in 2023, and further to RMB 2,698.97 billion in 2024, primarily driven by the rise in new energy vehicle sales [10]. - The company's gross profit for 2024 was RMB 363.08 billion, with a gross margin of 13.5% [10]. Profitability - Chery's net profit for 2024 was RMB 143.34 billion, with a net profit margin of 5.3% [11]. - The adjusted profit increased from RMB 41.08 billion for the three months ending March 31, 2024, to RMB 48.57 billion for the same period in 2025 [11]. Use of Proceeds - Assuming a share price of HKD 29.25 and no exercise of the over-allotment option, Chery estimates net proceeds of approximately HKD 8.441 billion from the global offering, with allocations for R&D, market expansion, and production facility upgrades [11].

Group 1 - The recent rise in HIBOR is attributed to a contraction in Hong Kong dollar supply and increased demand from southbound capital inflows, leading to a narrowing of the Hong Kong-US interest rate spread and triggering the unwinding of carry trades, which further pushed up HIBOR and the Hong Kong dollar [1][22][23] - Historical data shows that when HIBOR rises by 20 basis points, there is an 81% probability that the Hang Seng Index will decline on the same day, with an average drop of 1.9%, while the Hang Seng Tech Index has a 71% probability of decline with an average drop of 1.1% [4][26][27] - The impact of HIBOR on the Hong Kong stock market is indirect and short-term, primarily affecting financing rates linked to HIBOR, which influences market liquidity and investor behavior [12][39] Group 2 - The current macroeconomic environment, including expectations of US interest rate cuts and a weakening dollar, is favorable for Hong Kong stock market liquidity, supporting the market's performance [15][43] - A "barbell strategy" is recommended for asset allocation, focusing on stable value assets with high AH premium as a long-term base, while also considering growth assets with significant potential [15][47] - Recent trends indicate that southbound capital inflows remain strong, with notable net purchases in major stocks like Alibaba and Meituan, suggesting continued interest in Hong Kong equities [52]

Core Viewpoint - The Chinese automotive industry is facing a new wave of price wars, which has raised concerns about unhealthy competition, profit erosion, and potential risks to product quality and consumer safety [1][6]. Group 1: Price War Characteristics - The current price war is characterized by three main features: greater intensity, broader scope, and faster response times. Over 20 mainstream brands have participated, with discounts typically ranging from 10% to 30%, and some models seeing reductions exceeding 40% [5]. - The inventory pressure in the automotive sector has reached alarming levels, with the inventory warning index hitting 62% in April 2025, indicating a significant oversupply [4]. - Consumer sentiment has shifted, with many now associating price cuts with reduced quality, leading to a decline in brand loyalty [7]. Group 2: Impact on the Industry - The ongoing price wars are expected to compress profit margins significantly, with projections indicating that leading automakers' net profit margins could drop from 8% to below 5% by 2025 [7]. - The average R&D intensity in the automotive industry is forecasted to decrease from 5.2% in 2024 to 4.1% in 2025, potentially hindering technological advancements and product safety [7]. - The pressure on supply chain companies is increasing, with component manufacturers facing forced price reductions that could lead to systemic risks in battery safety and chip supply [7]. Group 3: Recommendations to Address Price Wars - To mitigate the effects of the price war, it is suggested that automakers establish rational competition mechanisms, potentially modeled after the German automotive industry's practices [9]. - The government is encouraged to enhance regulatory oversight and implement stricter controls, including quality traceability systems for discounted models [9]. - Industry organizations should create collaborative platforms to improve supply and demand forecasting mechanisms [10].