News

EU Pricing Commitment Guidance: The European Union has introduced a pricing commitment guidance document for Chinese automakers, allowing them to replace high tariffs with minimum import prices.
Positive Impact on BYD and Geely: Analysts believe that companies like BYD and Geely, which have performed well in European markets, will benefit from this change by enjoying higher profit margins while keeping their selling prices stable.

EU-China Tariff Agreement: The European Union has reached a consensus with China regarding tariffs on electric vehicles, requiring Chinese exporters to submit price commitment letters before entering the EU market.
Auto Stocks Performance: Following the tariff announcement, several Chinese carmakers, including BYD, CHERY, and GEELY, saw significant stock price increases, with BYD rising by nearly 4% and other brands also experiencing gains.

NASDAQ Golden Dragon China Index Performance: The NASDAQ Golden Dragon China Index surged over 4%, with Alibaba ADR leading the charge, rising 10%, which positively influenced the opening of Hong Kong stocks.
Hong Kong Stock Market Opening: The Hang Seng Index (HSI) opened 350 points higher at 26,958, while the HSCEI and HSTECH also saw significant increases of 115 points and 113 points, respectively.
Tech Sector Movements: Major tech stocks like Alibaba, Tencent, and Meituan opened higher, with Alibaba-W rising 5% and Tencent increasing by 2.2%, amidst notable short selling activity.
Sector Highlights: In the auto sector, BYD and XPENG saw increases of 4.1% and 3.5%, respectively, while pharmaceutical stocks like WUXI APPTEC projected a significant profit increase, leading to a 4.7% rise in share price.

Share Repurchase Details: Geely Auto repurchased 9.007 million shares on January 12 at prices between HKD16.63-17.15, totaling approximately HKD151 million.
Total Shares Repurchased: Since the repurchase authorization on May 30, 2025, Geely Auto has bought back a total of 44.144 million shares, representing 0.43777% of its issued share capital.

Market Performance: The HSI rose by 224 points (0.9%) to 26,456, with significant gains in the HSCEI and HSTECH, while total market turnover reached HKD168.375 billion.
Regulatory Investigation: China's State Council's Anti-Monopoly and Anti-Unfair Competition Committee is investigating the food delivery platform service industry, impacting companies like MEITUAN-W.
Tech Stock Rally: AI and software stocks surged, with notable increases in companies like BIDU-SW and KUAISHOU-W, as anticipation builds for a new AI model release.
Automotive Market Outlook: The China Passenger Car Association forecasts flat sales for the car market this year, with several major carmakers experiencing declines in stock prices.
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