In the morning session on November 5, the entire new energy industry chain surged broadly, and Hong Kong Stock Connect automotive stocks rode the momentum higher.
Li Auto-W (02015) climbed more than 8%, XIAOMI-W (01810) rose over 7%, and Leapmotor jumped more than 6%.
Among popular ETFs, the CHINAAMC CSI HONG KONG STOCK CONNECT AUTOMOTIVE INDUSTRY THEMATIC ETF (520780), which focuses on the Hong Kong Stock Connect new energy vehicle chain, saw its benchmark index rise more than 5%, recently rebounding continuously from a stage low and reclaiming several key moving averages.
On the overseas macro front, the Democratic Party's midterm election victory could mean reduced policy uncertainty and strengthened expectations for IRA clean energy subsidies, which directly benefits new energy sectors such as solar, wind power, and energy storage. Accelerated new energy development in turn drives down clean energy costs and boosts investment in power grids and charging infrastructure, which then transmits to new energy vehicles, raising expectations for tax credits and increasing penetration rates.
Three catalysts to watch for in the new energy vehicle market going forward: first, profit contribution from the export side; second, the密集 rollout of intelligent driving policies, with L3 access pilot expansion and L2-level assisted driving penetration exceeding 70%, accelerating smart driving commercialization; third,密集 year-end new vehicle deliveries, combined with auto show promotions and local subsidies nearing expiration, demand is expected to be released in a concentrated manner.
Sector valuations already imply low growth expectations, and once earnings are verified, the room for valuation repair could be considerable.
To gain exposure to the Hong Kong Stock Connect new energy vehicle industry chain, it is recommended to focus on the actively traded T+0 product, the CHINAAMC CSI HONG KONG STOCK CONNECT AUTOMOTIVE INDUSTRY THEMATIC ETF (520780). Its benchmark index focuses on complete vehicles while also covering sub-sectors such as auto parts and industrial metals. It benefits from multiple tailwinds including high prosperity in auto consumption, accelerated L3-L4 intelligent driving adoption, and spillover dividends from robotics, with heavy positions in scarce Hong Kong-listed smart driving leaders such as XPeng, BYD, Li Auto, and Geely.
ETF fund-related fee disclosure: When investors subscribe to or redeem fund shares, the subscription and redemption agent may charge a commission of no more than 0.5%. On-exchange trading fees are subject to actual charges by securities companies, and no sales service fee is charged.
Risk disclaimer: The CHINAAMC CSI HONG KONG STOCK CONNECT AUTOMOTIVE INDUSTRY THEMATIC ETF passively tracks the CSI Hong Kong Stock Connect Automotive Industry Thematic Index. The index base date is December 30, 2016, and the publication date is July 21, 2022. The constituent stocks of the index are adjusted in a timely manner according to the index compilation rules, and its back-tested historical performance does not predict future index performance. The index constituent stocks mentioned in this article are for display purposes only. Individual stock descriptions do not constitute investment advice in any form, nor do they represent the holdings or trading trends of any fund under the manager. The risk rating of this fund as assessed by the fund manager is R4-medium-high risk, suitable for aggressive (C4) and above investors. Any information appearing in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only, and investors must be responsible for their own investment decisions. In addition, any views, analyses, and forecasts in this article do not constitute investment advice in any form to readers, nor shall they bear any responsibility for direct or indirect losses caused by the use of the content of this article. Fund investment involves risks. Past performance of a fund does not represent its future performance. The performance of other funds managed by the fund manager does not constitute a guarantee of the fund's performance. Fund investment requires caution.
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