Zhitong Hong Kong Stock Early Knowledge | The China Securities Regulatory Commission will further expand the interconnection between the mainland and Hong Kong markets. In February, the Nasdaq fell nearly 4%

[Today's Headlines]

Deepening Connectivity to Consolidate and Enhance Hong Kong's Position as an International Financial Center

According to CCTV Finance, the China Securities Regulatory Commission recently issued a letter in response to proposals from the second session of the 14th National Committee of the Chinese People's Political Consultative Conference. It mentioned that the China Securities Regulatory Commission and relevant departments will further optimize and expand the connectivity between the mainland and Hong Kong financial markets, continuously optimizing mechanisms such as Stock Connect, Bond Connect, and mutual recognition of funds. They will conduct in-depth research and demonstration on the feasibility of Hong Kong companies listing in the mainland based on existing experiences, continuously promote the optimization of the "Cross-Border Wealth Management Connect" pilot program according to market demand, and orderly carry out the pilot of digital renminbi in Hong Kong based on actual conditions, comprehensively deepening practical cooperation between the mainland and Hong Kong to consolidate and enhance Hong Kong's position as an international financial center.

[Market Outlook]

Most Popular Chinese Concept Stocks Decline, Nasdaq Down Nearly 4% in February

Overnight, U.S. stocks closed last Friday with the Dow Jones up 601.41 points, an increase of 1.39%, closing at 43,840.91 points; the Nasdaq rose 302.86 points, an increase of 1.63%, closing at 18,847.28 points; the S&P 500 index rose 92.93 points, an increase of 1.59%, closing at 5,954.50 points. In February, the Dow Jones fell 1.58%, the S&P 500 index fell 1.43%, and the Nasdaq fell nearly 4%.

Large tech stocks generally rose, with Apple, Netflix, Amazon, Meta, Google, and Microsoft all rising over 1%. Nvidia and Tesla rose nearly 4%, with Nvidia's market value returning above $3 trillion, and Tesla ending a six-day losing streak. Most popular Chinese concept stocks declined, with the Nasdaq Golden Dragon China Index closing down 1.82%, Weibo down nearly 5%, Li Auto and XPeng down over 3%, and Alibaba down nearly 3%. The Hang Seng Index ADR rose, closing at 23,067.2, up 125.88 points or 0.55% compared to Hong Kong's closing.

[Hot Topics Ahead]

Second-Hand Housing Prices in 100 Cities Narrow Decline for 7 Consecutive Months, Core Cities See Rapid Recovery in Transaction Volume After the Holiday

On March 1, the third-party research institution China Index Academy released the "100 City Price Index Report," which showed that in February, influenced by the entry of some high-quality improvement projects in certain cities, the prices of newly built residential properties in 100 cities experienced a slight structural increase; the decline in the second-hand housing market continued to narrow. From the market transaction perspective, first-tier cities represented by Shenzhen, Beijing, and Shanghai quickly shook off the holiday impact after the Spring Festival, with market activity significantly increasing and transactions rapidly recovering after the holiday.

Chery Automobile Officially Files for IPO in Hong Kong, Realizing 20-Year "Listing Dream"

On February 28, Chery Automobile Co., Ltd. officially submitted its listing application to the Hong Kong Stock Exchange. As the only large vehicle group in China that has not been listed, Chery Automobile's move quickly became the focus of industry attention. This IPO in Hong Kong aims to raise funds for the research and development of different models and versions of passenger cars, further expanding its product portfolio, developing the next generation of vehicles and advanced technologies, enhancing core technological capabilities, expanding overseas markets, executing globalization strategies, improving its production facilities, and supplementing working capital Pan Gongsheng: A policy document to regulate supply chain finance will be issued

In terms of supply chain finance, Pan Gongsheng, the Governor of the People's Bank of China, revealed that the central bank will take the lead in issuing a document in conjunction with the Financial Regulatory Administration and the China Securities Regulatory Commission to regulate supply chain finance operations and guide information service institutions in better serving the financing needs of small and medium-sized enterprises.

ICBC Chairman Liao Lin: Plans to provide no less than 6 trillion yuan in financing for private enterprises over the next three years

On February 28, a symposium on financial support for the high-quality development of private enterprises was jointly held by the People's Bank of China, the All-China Federation of Industry and Commerce, and other departments. Liao Lin, Chairman of the Industrial and Commercial Bank of China (ICBC), stated that to provide high-quality services for the development of private enterprises, the bank will strengthen resource allocation, streamline financing channels such as equity, bonds, and loans, and plans to provide no less than 6 trillion yuan in financing for private enterprises over the next three years, increasing credit and medium to long-term funding supply.

Intelligent vehicle-mounted drone system "Lingyuan" launched; Wang Chuanfu: BYD becomes the world's first automaker to mass-produce vehicle-mounted drones

BYD, in collaboration with DJI, held a launch event for the intelligent vehicle-mounted drone system in Shenzhen, where Wang Chuanfu, Chairman and President of BYD, delivered a speech. At the event, Wang Chuanfu announced that the intelligent vehicle-mounted drone system jointly developed by BYD and DJI has been officially named "Lingyuan." Regarding the drone technology solutions, Wang Chuanfu stated that BYD began internal exploration and attempts in 2016. He also mentioned that after dual technical testing and a series of safety certifications by both BYD and DJI, "Lingyuan" has achieved mass production, making BYD the world's first automaker to mass-produce vehicle-mounted drones.

According to Zhitong Finance APP, BYD Company Limited (01211) announced that in February 2025, the production volume of new energy vehicles was approximately 334,100 units, a year-on-year increase of 202.45%; sales volume was approximately 322,800 units, a year-on-year increase of 163.95%.

Lei Jun: Xiaomi SU7 Ultra orders far exceed expectations; discussions on increasing production will be held

On March 2, Lei Jun, founder, chairman, and CEO of Xiaomi, posted on Weibo that the delivery ceremony for the first Xiaomi SU7 Ultra vehicle will be held at 10 a.m. Meanwhile, Lei Jun revealed that orders for the Xiaomi SU7 Ultra far exceed expectations and that discussions on increasing production will continue. After the new car went on sale, it received overwhelming orders, with over 6,900 units reserved in 10 minutes and over 10,000 units in 2 hours, achieving the annual target. According to the Xiaomi Automobile WeChat official account, the order volume for the Xiaomi SU7 Ultra has surpassed 10,000 units, completing the annual task ahead of schedule.

Xinyi Glass (00868) releases annual results; profit attributable to shareholders is 3.369 billion yuan, a decrease of 31% year-on-year

According to Zhitong Finance APP, Xinyi Glass (00868) released its annual results for the year ending December 31, 2024. The group achieved revenue of 22.324 billion yuan (RMB, the same below), a year-on-year decrease of 8.1%; profit attributable to equity holders of the company was 3.369 billion yuan, a year-on-year decrease of 31%; basic earnings per share were 79.23 cents; a final dividend of 0.1 HKD per share is proposed Geely Automobile (00175): Subsidiary Plans to Establish Joint Venture for Intelligent Driving Business

According to Zhitong Finance APP, Geely Automobile (00175) announced that on March 2, 2025, Zhejiang Jirun (a subsidiary of the company), Liangjiang Industrial Fund, Chongqing Industrial Mother Fund, Chongqing Maichi, Lotus Robotics, Qianli Technology, and Jianghehui signed a joint venture framework agreement, with the parties conditionally agreeing to establish a joint venture to engage in intelligent driving business. After the closing, the Group, Chongqing Maichi, Qianli Partnership, Lotus Robotics, and the employee incentive platform will hold 30%, 30%, 30%, 5%, and 5% equity in the joint venture, respectively.

Zhitong Finance APP reported that Geely Automobile (00175) announced that the Group's total sales in February 2025 were 204,900 vehicles, an increase of approximately 84% compared to the same period last year.

【Stock Highlights】

Air China (00753): Airline Expectations Remain Low

In January, domestic airline passenger volume increased by 10% year-on-year, with international routes exceeding 2019 levels. Due to capacity constraints from aircraft manufacturers and upstream component suppliers, the growth rate of aircraft in the aviation industry will slow in the future, and supply-demand optimization will drive ticket prices up, coupled with market-driven ticket prices, airline profit elasticity will be released.

CITIC Securities stated that it values the long-term logic of aviation, expecting it to remain low, and recommends increasing holdings in aviation. 1) In the long term, China's aviation demand has huge potential, and airspace bottlenecks continue. Once supply and demand recover, considering market-driven ticket prices and slowing fleet growth, an increase in the profit center is expected. 2) The trend of supply-demand recovery in China's aviation industry is confirmed for 2025. The trend of reducing domestic flights and increasing international flights continues, and visa-free policies and domestic demand stimulation are expected to accelerate supply-demand improvement. 3) It highlights the option of airlines during the period of falling oil prices. Significant loss reduction in the off-season, and the peak season may show unexpected profit elasticity, which is expected to catalyze optimistic expectations. 4) Airline expectations remain low, and it is recommended to increase holdings in aviation.

Morgan Stanley remains optimistic about China's civil aviation being supply-driven and in a multi-year upward cycle, with Air China being the most favored, as the company focuses more on pricing rather than passenger volume, and its relatively high proportion of China-U.S. routes. If the stock market led by Chinese technology rebounds, business travel may also recover, potentially providing support for demand.

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