China Life Overseas Company Assets: By the end of 2025, China Life Overseas Company reported total assets exceeding RMB452.8 billion, focusing on stable global investments leveraging long-term capital.

Investment in IPOs and Sectors: The company actively participated in H-share IPOs and invested in sectors such as semiconductors, AI, and medical fields, supporting unprofitable biotech listings on the Hong Kong Stock Exchange.

Private Equity Engagement: China Life Overseas engaged in equity investments through private equity funds, targeting innovative enterprises in key sectors, including notable companies like HESAI-W and MINIMAX-WP.

Market Preferences: JPMorgan has expressed a preference for the Asian insurance market, particularly highlighting China Life and PING AN as top picks for investment in the current year.

China's Auto Industry Challenges: UBS highlights that despite a 19% sales growth target for China's auto industry, challenges such as reduced stimulus, increased taxes, and rising commodity prices may hinder domestic demand and profit margins.

Focus on Export and Technology: Investors are advised to target companies with overseas expansion capabilities and strengths in intelligent technology, as the export market becomes vital for growth, especially with agreements on EV pricing with the EU and reduced tariffs from Canada.

Company Strategies for Growth: GWMOTOR plans to export 600,000 cars in 2026, while SINOTRUK aims to enter the Brazilian and European markets, reflecting a strategic shift towards international markets.

Investment Preferences: UBS favors companies involved in autonomous driving and intelligent technology, such as WERIDE-W, PONY-W, and HESAI-W, as well as automakers like BYD and GWMOTOR with strong global market presence.

Company Performance: HESAI-W showcased its latest LiDAR technology at CES 2026, reporting strong mass production delivery capabilities and steady advancements in both domestic and international capacity.

Regulatory Approval: The L3 model received approval from China's Ministry of Industry and Information Technology, allowing for an increase in the number of LiDARs per vehicle.

Market Outlook: CICC predicts that LiDARs will be crucial for the next wave of physical AI applications, such as Robotaxis and robots, maintaining an Outperform rating on HESAI-W.

Target Price Increase: CICC raised its target price for HESAI-W by 32.1% to HKD241.1, reflecting an upward shift in valuation for the autonomous driving and robotics sectors.

Market Overview: The HSI closed down 272 points (1%) at 26,438, with the HSCEI and HSTECH also experiencing declines of 1.1% and 1.6%, respectively, amid a total market turnover of HKD148.571 billion.

Technology Sector Performance: Major tech stocks like BABA-W, TENCENT, and MEITUAN-W saw significant declines, with BABA-W dropping 4% after a downgrade, while short selling ratios remained high across the sector.

Chip Stocks Resilience: In contrast to the overall market trend, chip stocks like HUA HONG SEMI and BIREN TECH experienced gains of 5.173% and 4.8%, respectively, indicating a divergence in sector performance.

Automotive Sector Updates: Despite a general decline in automotive stocks like BYD and NIO, HESAI-W surged 5.1% following news of new laser radar technology being integrated into the upcoming SU7 series by XIAOMI.

Hesai's Stock Performance: Hesai's stock price surged by 7.53% to HKD197 following the announcement of its partnership with Nvidia for the "NVIDIA DRIVE AGX Hyperion 10 platform."

Short Selling Activity: The company experienced significant short selling, with a total of $25.44 million and a short selling ratio of 27.071%.