Strong sales and robust performance! Huabao Fund’s Hong Kong Stock Connect Auto ETF (520780) rises against the market trend, nearly touching the previous high during intraday trading. Market institutions: the rebound window has opened

On the morning of the 2nd, Hong Kong Stock Connect auto stocks defied the market trend, with Chery Automobile leading gains of over 6%, Sunny Optical Technology rising over 5%, and multiple stocks such as Ganfeng Lithium, Longbai Technology, Geely Auto, Great Wall Motor, and Tianqi Lithium increasing by more than 2%.
In terms of popular ETFs, the Hong Kong Stock Connect New Energy Vehicle ETF Huabao (520780), focusing on Hong Kong-listed new energy vehicle stocks, briefly surged over 2% at market open, approaching its previous high, and is now rising against the trend.

On the news front, Chery Automobile stated that the total sales of its five major brands in March increased by approximately 15% year-on-year. Additionally, on April 1st, the “new car-making forces” successively released their March delivery results, showing impressive growth. Among them, Leap Motor returned to a monthly sales volume of 50k units, leading the new force rankings with a year-on-year increase of 35% and a month-on-month increase of 78.25%. Li Auto, NIO, and Xpeng Motors all achieved varying degrees of growth compared to the previous month.

Regarding performance, among automakers that have released their 2025 annual reports, Geely and Chery both reported revenues exceeding 300 billion yuan. The efforts in new energy vehicles and overseas markets have provided strong growth momentum and profitability for these two companies. The “Wei-Xiao-Li-Zero” new car-making forces have also published their annual reports. Data shows that thanks to a significant increase in deliveries and good gross margin performance, Leap Motor is expected to be profitable for the full year 2025, while NIO and Xpeng achieved profitability in the fourth quarter.

Huachuang Securities pointed out that the performance of passenger cars continues to stand out, with a recovery in terminal demand. The logic of raising new car prices to offset raw material cost increases is beginning to be recognized by some investors. Rising oil and gas prices have strengthened the narrative of going overseas, jointly driving investment sentiment into an inflection point, and opening a rebound window. Furthermore, from the perspectives of future sales outlook, lithium carbonate expansion cycles, and overseas expansion pace, Q1 2026 may represent the bottom for the automotive sector’s fundamentals over the next two years.

For those looking to invest in the Hong Kong Stock Connect new energy vehicle industry chain, it is recommended to focus on the Hong Kong Stock Connect Auto ETF Huabao (520780). The target index focuses on complete vehicles, while also covering auto parts, industrial metals, and other niche sectors. It benefits from high auto consumption, the accelerated implementation of L3-L4 intelligent driving, and spillover benefits from robotics, among multiple positive factors. It also holds significant positions in leading Hong Kong-listed smart-driving stocks like Xpeng, BYD, Li Auto, and Geely, and is an active T+0 trading product.

Data source: Shanghai and Shenzhen Stock Exchanges, etc.

Risk reminder: The Hong Kong Stock Connect Auto ETF Huabao passively tracks the CSI Hong Kong Stock Connect Auto Industry Theme Index, which was established on December 30, 2016, and published on July 21, 2022. The annual gains and losses of the CSI Hong Kong Stock Connect Auto Industry Theme Index from 2020 to 2024 are 92.68%, -1.21%, -43.88%, 5.92%, and 5.57%, respectively. The index components are adjusted periodically according to the index rules. Its backtested historical performance does not predict future performance. The index components shown are for display only; individual stock descriptions are not investment advice and do not represent holdings or trading activity of any funds managed by the manager. The fund’s risk level is assessed as R4—medium-high risk, suitable for active investors (C4) and above. All information in this article (including but not limited to individual stocks, comments, forecasts, charts, indicators, theories, or any form of expression) is for reference only. Investors are responsible for their own investment decisions. The views, analysis, and forecasts in this article do not constitute investment advice and do not hold the author or the fund manager liable for any direct or indirect losses resulting from the use of this content. Investment in funds involves risks; past performance does not guarantee future results. The performance of other funds managed by the fund manager does not guarantee the performance of the fund. Please invest cautiously.

MACD Golden Cross signals have formed, and these stocks are on a good upward trend!