ET Net News Agency reported on the 12th that Ukraine and Russia may implement an "energy ceasefire." Ukrainian President Zelenskyy supports this arrangement but emphasized that Russia must also comply. Meanwhile, Washington and Moscow have reached an agreement on Russian diesel exports, causing oil prices to soften during the Asian session. New York crude futures briefly fell below $90 per barrel. Asian stock markets moved individually; apart from Japan's market holiday, Chinese mainland, South Korean, and Taiwan shares all weakened. The Hang Seng Index opened over 200 points higher and reached its intraday high shortly after market open, but faced resistance at higher levels, reversing lower and briefly turning slightly negative. It closed at 24,271, up 59 points or 0.2%. Board turnover exceeded HK$162.6 billion. The Hang Seng China Enterprises Index closed at 8,168, up 20 points or 0.3%. The Hang Seng Tech Index closed at 4,169, down 28 points or 0.7%.
After touching a three-month low last Thursday (8th), the Hang Seng Index staged a self-driven rebound on Friday, outperforming other Asian markets. That evening, U.S.-listed Chinese ADRs were bizarrely driven higher, with the Golden Dragon Index, reflecting the performance of Chinese ADRs, surging 2.7%, setting the tone for the strong opening today. However, selling pressure at higher levels was evident, indicating distribution activity. With U.S. bond yields remaining elevated and mainland Chinese stocks continuing to weaken—the Shanghai Composite Index closed below 3,800 for the first time in two months—the near-term upside for the Hang Seng Index appears limited. The index may first consolidate near its 10-day moving average (around 24,247).
*September domestic auto sales down year-on-year; BYD and Geely reverse lower*
China and the European Union have reached an agreement on hybrid vehicle exports, under which China will limit the number of vehicles exported to the EU to avoid punitive tariffs. The EU expects Chinese hybrid vehicle exports to decline by more than half. Additionally, China's passenger vehicle retail sales in September reached 1.702 million units, down 24% year-on-year; among them, new energy vehicle retail sales reached 1.141 million units, down 12% year-on-year.
Auto stocks moved higher initially before reversing lower. BYD (01211) rose nearly 3% intraday but closed down 1.7% at HK$74.35; Geely Automobile (00175) surged 6% intraday but erased all gains, closing down slightly by 0.1% at HK$15.11; Great Wall Motor (02333) fell 0.2% to HK$7.165; Li Auto (02015) rose 0.5% to HK$44.9; XPeng (09868) rose 0.4% to HK$38.48; NIO (09866) rose 0.1% to HK$27.14; Leapmotor (09863) rose 4.3% to HK$36.3.
*AI hardware stocks continue to weaken; Hua Hong down for fifth consecutive day*
U.S. AI chip stocks weakened last Friday (9th) against the broader market trend, dragging down Hong Kong-listed AI hardware stocks. Hua Hong (01347) fell for the fifth consecutive day, closing down 5% at HK$89.85; SMIC (00981) fell 2.5% to HK$56.2; GigaDevice (03986) fell 4.8% to HK$375.6; Montage Technology (06809) fell 5% to HK$254.8; Kingboard Laminate (01888) fell 4.5% to HK$46.8; Yangtze Optical Fibre (06869) fell 7.2% to HK$156.1; Zhongji Intelligent (03308) fell 7.3% to HK$903.
*China-EU dispute concludes; Chery seeks growth from lower base*
Chery Automobile (09973) rose 1.4% to HK$24. The stock traded approximately 4.63 million shares worth HK$112 million, with an intraday high of HK$24.78 and a low of HK$23.52.
Chery Automobile's mid-term revenue rose 1.2% year-on-year to RMB 143.28 billion, but attributable profit to shareholders declined 11.7% to RMB 8.567 billion, partly due to reduced earnings from associates and larger impairment losses in non-controlling interests. Gross profit for the period increased 25.1% to RMB 23.044 billion, with gross margin rising 3.1 percentage points to 16.1%.
After years of rapid growth, China's domestic auto market is showing signs of fatigue, making overseas expansion another growth avenue for automakers. Last month, Chery Automobile announced that its group's August new energy vehicle export volume reached 187,000 units, accounting for 71% of the group's total monthly sales, highlighting exports as a key growth driver. Earlier, JPMorgan noted that Chery's brand market share in Europe has increased from 1.6% in 2025 to 3.5% in the first eight months of 2026. In addition, the group stated in August that its MOKE robot subsidiary is preparing for an initial IPO, adding future appeal to the stock price.
Chery listed in Hong Kong in September 2025 at HK$30.75, with the share price reaching a post-adjustment high of HK$33.99 (unadjusted high of HK$34.98) on its listing day. Since then, the stock has trended downward. It rebounded after falling to HK$23.04 earlier this month, with support seen at HK$23.52 on both last Friday (9th) and today. The stock is expected to consolidate around this level first. With a forecast P/E ratio of less than 6x—unusually low single-digit PE among auto stocks—and a forecast dividend yield of 5%, Chery has potential to rebound and catch up, especially as the China-EU hybrid vehicle trade dispute concludes. Assuming the broader market stabilizes, the stock could target HK$27 as its first upside target. (vs)
After touching a three-month low last Thursday (8th), the Hang Seng Index staged a self-driven rebound on Friday, outperforming other Asian markets. That evening, U.S.-listed Chinese ADRs were bizarrely driven higher, with the Golden Dragon Index, reflecting the performance of Chinese ADRs, surging 2.7%, setting the tone for the strong opening today. However, selling pressure at higher levels was evident, indicating distribution activity. With U.S. bond yields remaining elevated and mainland Chinese stocks continuing to weaken—the Shanghai Composite Index closed below 3,800 for the first time in two months—the near-term upside for the Hang Seng Index appears limited. The index may first consolidate near its 10-day moving average (around 24,247).
*September domestic auto sales down year-on-year; BYD and Geely reverse lower*
China and the European Union have reached an agreement on hybrid vehicle exports, under which China will limit the number of vehicles exported to the EU to avoid punitive tariffs. The EU expects Chinese hybrid vehicle exports to decline by more than half. Additionally, China's passenger vehicle retail sales in September reached 1.702 million units, down 24% year-on-year; among them, new energy vehicle retail sales reached 1.141 million units, down 12% year-on-year.
Auto stocks moved higher initially before reversing lower. BYD (01211) rose nearly 3% intraday but closed down 1.7% at HK$74.35; Geely Automobile (00175) surged 6% intraday but erased all gains, closing down slightly by 0.1% at HK$15.11; Great Wall Motor (02333) fell 0.2% to HK$7.165; Li Auto (02015) rose 0.5% to HK$44.9; XPeng (09868) rose 0.4% to HK$38.48; NIO (09866) rose 0.1% to HK$27.14; Leapmotor (09863) rose 4.3% to HK$36.3.
*AI hardware stocks continue to weaken; Hua Hong down for fifth consecutive day*
U.S. AI chip stocks weakened last Friday (9th) against the broader market trend, dragging down Hong Kong-listed AI hardware stocks. Hua Hong (01347) fell for the fifth consecutive day, closing down 5% at HK$89.85; SMIC (00981) fell 2.5% to HK$56.2; GigaDevice (03986) fell 4.8% to HK$375.6; Montage Technology (06809) fell 5% to HK$254.8; Kingboard Laminate (01888) fell 4.5% to HK$46.8; Yangtze Optical Fibre (06869) fell 7.2% to HK$156.1; Zhongji Intelligent (03308) fell 7.3% to HK$903.
*China-EU dispute concludes; Chery seeks growth from lower base*
Chery Automobile (09973) rose 1.4% to HK$24. The stock traded approximately 4.63 million shares worth HK$112 million, with an intraday high of HK$24.78 and a low of HK$23.52.
Chery Automobile's mid-term revenue rose 1.2% year-on-year to RMB 143.28 billion, but attributable profit to shareholders declined 11.7% to RMB 8.567 billion, partly due to reduced earnings from associates and larger impairment losses in non-controlling interests. Gross profit for the period increased 25.1% to RMB 23.044 billion, with gross margin rising 3.1 percentage points to 16.1%.
After years of rapid growth, China's domestic auto market is showing signs of fatigue, making overseas expansion another growth avenue for automakers. Last month, Chery Automobile announced that its group's August new energy vehicle export volume reached 187,000 units, accounting for 71% of the group's total monthly sales, highlighting exports as a key growth driver. Earlier, JPMorgan noted that Chery's brand market share in Europe has increased from 1.6% in 2025 to 3.5% in the first eight months of 2026. In addition, the group stated in August that its MOKE robot subsidiary is preparing for an initial IPO, adding future appeal to the stock price.
Chery listed in Hong Kong in September 2025 at HK$30.75, with the share price reaching a post-adjustment high of HK$33.99 (unadjusted high of HK$34.98) on its listing day. Since then, the stock has trended downward. It rebounded after falling to HK$23.04 earlier this month, with support seen at HK$23.52 on both last Friday (9th) and today. The stock is expected to consolidate around this level first. With a forecast P/E ratio of less than 6x—unusually low single-digit PE among auto stocks—and a forecast dividend yield of 5%, Chery has potential to rebound and catch up, especially as the China-EU hybrid vehicle trade dispute concludes. Assuming the broader market stabilizes, the stock could target HK$27 as its first upside target. (vs)
