Zhitong Hong Kong Stock Exchange Unravels | Hainan Free Trade Port Closure Is Significant, Driverless Driving Benefits Intensive Catalysis

[Anatomy Dashboard]

Today is a bit like today. Unlike the dull days before, both markets are moving steadily forward, and Hong Kong stocks closed up 0.75%.

The Bank of Japan raised interest rates by 25 pips to 0.75% as scheduled this morning (19th), a 30-year high. As mentioned earlier about this rate hike, I was a little worried at the beginning, but when it came to fruition, it just ran out of favor, and the situation was optimistic in the later stages. The market anticipates that the Bank of Japan may raise interest rates again as early as June or July next year, while others think it will raise interest rates in October next year. So don't worry. Also, the US core CPI for November was the lowest since the beginning of 2021, and interest rate cuts are expected again next year. In addition, there is another advantage for the CXO industry. See section focus for details.

Big Finance continues to stabilize. CICC (601995.SH) announced that the company will implement a cash dividend of RMB 0.09 (tax included) per share for the first half year of 2025, with a total cash dividend of RMB 434 million (tax included). The share registration date is December 26, 2025, and the exclusion (interest) day and cash dividend payment date are both December 29, 2025. H Shares CICC (03908) rebounded more than 4% today.

The commercialization of driverless driving continues, and two leading domestic companies in the field of unmanned freight — Jiushi Intelligence and Cainiao, are currently discussing the deep integration of the unmanned vehicle business. The two sides plan to build a more competitive consortium through restructuring to strengthen and consolidate their dominant position in the rapidly growing urban distribution market to face the global, multi-level driverless freight market. Jiushi Intelligence and Cainiao are currently both top technical and commercial teams focusing on L4 driverless cars.

Mainline Technology (Beijing) Co., Ltd. officially submitted a listing application to the main board of the Hong Kong Stock Exchange. Established in 2017, Mainline Technology is an L4 autonomous truck and solution provider. Since its establishment, Mainline Technology has received multiple rounds of financing. Investors include iFLYX Ventures, NIO Capital, Bosch Group, and Prologis. It can be seen that the giants behind it agree highly.

Hang Seng Index Company officially launched the “Hang Seng Hong Kong Stock Connect Electronic Theme Index” on the 18th. Industry leaders such as Youjiao Innovation (02431), Horizon Robot-W (09660), Sagiteng Juchuang (02498), and Black Sesame Intelligence (02533) were selected.

What is growing the most intense today is the Youchao Innovation (02431) that I mentioned to you a few days ago. The core point mentioned is that its unmanned logistics vehicles have taken the lead in implementing the L4 business scenario where commercial closed loop is already the first. In the future, if training is successful in various complex scenarios, then the unmanned vehicle space in the logistics field will be completely opened up. As I mentioned last time, the stock still has an advantage at the bottom. Obviously, capital is flowing in, and there is no doubt that it will rise sharply today with profit. Today it surged more than 31%.

Xiaopeng Automobile-W (09868) has obtained an L3 autonomous driving road test license in Guangzhou and has begun normalized L3 road tests. The license is mainly used to test conditional autonomous driving on the Guangzhou Intelligent Connected Vehicle Test Expressway. The company expects to mass-produce a second-generation VLA with L4 capability in the first quarter of 2026, and expects to launch a Robotaxi model with L4 capability in 2026. Xiaopeng Motor has fully switched to an AI strategy, positioning itself as an AI car company facing the world, making it clear that it will transform into an AI automotive intelligent technology enterprise in the next ten years. Today's increase was more than 7%; other varieties, Zhejiang Shibao (01057) and Nexteer (01316), rose more than 10%; Joyson Electronics (00699), the core Tier 1 supplier in the field of autonomous driving, rose more than 5%.

The Hainan Free Trade Port officially launched island-wide customs clearance yesterday (18th), and all 8 open ports and 10 “second-tier port” supervision facilities were opened. It marks that Hainan Island, which is more than 30,000 square kilometers, has officially become a special customs control area, and China's opening up to the outside world ushered in a landmark and landmark step. Today, “People's Daily” also published an article on CALL: Read the opening volume of the Hainan Free Trade Port's customs closure and departure. The closure of the Hainan Free Trade Port once again clearly showed the world that China's determination to expand a high level of openness will not change, its determination to share development opportunities with the world will not change, and its determination to promote economic globalization will not change.

If yesterday's Hainan sector followed the traditional so-called “buying expectations and selling facts,” then the overall strength of the Hainan sector today is a high recognition of the policy. Naturally, the preferred variety is China Free (01880), and it is expected that traffic and sales will continue to rise with the support of the policy in the future. Today it's up nearly 7%.

Earlier, the Hainan Drug Administration issued “Certain Measures to Support the High-Quality Development of the Cosmetics Industry”. This is the first provincial special support policy for the cosmetics industry in Hainan. It establishes a comprehensive support system from 8 dimensions, and the policy dividends cover the entire industry chain. Mao Geping (01318) In November of this year, Mao Geping established Mao Geping (Hainan) Trading Co., Ltd. in Haikou with a registered capital of 10 million yuan. Its business scope includes wholesale and retail of cosmetics, import and export of goods, etc. Today's increase is over 4%.

The robotics industry is also intensively catalyzed. Daxiao Robotics, an intelligent company with Wang Xiaogang, co-founder of Shangtang (00020), announced the official release of the first Enlightened World Model 3.0 (Kairos3.0), which is open source to the entire industry and realizes commercial application, as well as the Embodied Super Brain Module A1, which allows the body to have autonomous spatial intelligence. These two major products are in the first tier in China and at the cutting edge of the international level in terms of intelligent commercialization and open source ecology. The core advantage is the engineering implementation of the world model, pure visual and autonomous navigation, and domestic chip adaptation, and they already have the ability to be mass-produced and deployed on a large scale. If the robot brain makes a breakthrough, then it will not be far from moving to the C-side on a large scale.

Furthermore, the investment community learned that Galaxy GM announced today that it has completed a new round of financing exceeding 300 million US dollars, which means that the domestic record for a single round of smart financing and cumulative financing has once again been refreshed. According to reports, Galaxy GM's latest valuation has reached 3 billion US dollars (over 20 billion yuan). At present, Galaxy GM has taken the lead in achieving long-term, fully autonomous, and large-scale implementation of humanoid robots in real application scenarios in China. The leading robot products in Hong Kong stock, Preferred Choice (09880) and Sanhua Intelligent Control (02050), both increased by nearly 5%.

CIMC Group (02039) announced that the company plans to increase its H share repurchase share within the amount authorized by the 2024 Annual General Meeting of Shareholders, adding HK$300 million for the second batch of H share repurchases. The repurchased H shares will be held as treasury shares, and the transfer or cancellation will be completed within three years after the repurchase is completed and the results of the repurchase are announced. In terms of orders, it was also recently revealed that contracts for the construction of 6+2 1,800TEU container ships have been signed, of which 6 are confirmed orders and 2 are alternative orders. The first ship is scheduled to be delivered in 2027, and subsequent ships will be delivered on a quarterly basis until all alternative ships are delivered in September 2029. Today it surged more than 15%.

Minhua Holdings (01999) plans to acquire GainlineReclineIntermediateCorp for 32 million US dollars. The acquired company is mainly engaged in the manufacture and sale of upholstered furniture in the US. It has 8 production facilities in northern Mississippi, with a total area of over 2 million square feet. Mainly a sales company with financial problems. Minhua Holdings (01999) is interested in its furniture retail distribution network with more than 1,000 active customers and cost saving opportunities in raw material procurement and improving manufacturing efficiency, which is conducive to an increase in overall valuation. Today it is up more than 6%.

[Section Focus]

In the early morning of December 18, Beijing time, the Senate's official website showed that the US FY2026 National Defense Authorization Act (2026 NDAA), which incorporates a revised version of the Biosafety Act, was passed.

The characteristics of the latest law: Direct procurement from US federal agencies only (accounting for about 5% of the US market), does not involve the B/D portion of health insurance, and simplified statements from related parties; the White House OMB1 draws up a “list of concerned companies” with reference to the Department of Defense list within 1 year, updated every year, no direct nomination, and sufficient buffer period; after the new FAR revision, 1260H list companies take effect for 60 days, and other companies take effect 180 days. The impact can be hedged ahead of time.

Obviously, it directly benefits leading CXO companies, such as Pharmaceutical Biotech (02269), Kanglong Chemical (03759), and Gloria Ying (06821); others include Cinda Biotech (01801) and BeiGene (06160).

[Individual Stock Mining]

Zero Sports Auto (09863): Zero Sports Lafa5 officially delivered, and the global layout continues to advance

The Zero Sport Lafa5 officially began nationwide delivery. The new car was officially launched on November 27. A total of 5 models were launched, with a price range of 978-121,800 yuan. 2025Q3, Zero Sports Auto's revenue was 19.45 billion yuan, or 97.3% year on year; net profit was 150 million yuan; gross margin was 14.5%, up 6.4 pct year on year and 0.9 pct month on month.

Comment: The Zero Run LaFA5 is built on the LEAP3.5 technology architecture. It is equipped with a Qualcomm 8295 chip and 8650 driver assistance chip. It supports dual AI large models and lidar sensing systems. The power aspect provides a rear drive layout and various power versions, and the CLTC has a maximum battery life of 605 kilometers. 2025Q3, the company's gross margin was 14.5%, which improved both month-on-month and year-over-year. The company delivered 17,3852 units in a single quarter, up 101.77% year on year and 29.63% month on month. In October, sales volume was 70,289 units, 84.11% year-on-year. The monthly sales volume exceeded 70,000 units for the first time, the core model C10 exceeded 20,000 units in a single month, and various models such as the B01, B10, C11, and C16 achieved monthly sales exceeding 10,000 units.

The company released six major technologies for the new flagship D platform in October, covering many key technologies such as flagship range extension (80.3 degree large battery), flagship kV pure electric, dual 8797 smart driving platform (capable of VLA assisted driving and large end side model cockpit), flagship driving control (LMC2.0 chassis system), flagship safety and flagship comfort. Overseas terminal orders increased sharply in October. 17,397 units were exported in Q3, with a total of 37,772 units exported in January-September. The number of contracts signed by the company's overseas end customers in October increased by more than 100% compared to September. As of September 30, 2025, the company has established more than 700 overseas sales and service outlets in international markets such as Europe, the Middle East, Africa, and the Asia-Pacific region, and the global layout continues to advance.